Drugmaker Dr Reddy's Laboratories Ltd has sold an antibiotic manufacturing facility in the US to Abu Dhabi-based pharmaceutical manufacturer Neopharma LLC UAE.
“This sale is in line with our stated priority to streamline and optimize our global cost structures and help us focus on other business priorities to drive growth,” Erez Israeli, chief operating officer at Dr Reddy's, said in a statement.
Suresh Nandiraju, chief operating officer at Neopharma Inc., the UAE company’s US unit, said the acquisition will strengthen its product portfolio for driving long-term, sustainable growth by leveraging its global presence.
The facility is located at Bristol, Tennessee. The plant and associated facilities are used to make amoxicillin-based products, which include semi-synthetic penicillin.
The 390,000-square-foot main facility makes secondary oral-solid dose penicillin manufacturing. A separate 24,000-square-foot plastics-processing facility is also part of the transaction.
Dr Reddy's makes bulk drugs, generics, biosimilars and differentiated formulations. It also provides custom pharmaceutical services. Its major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology.
The company’s consolidated revenue from operations stood at Rs 14,281 crore in the year through March 2018, up from Rs 14,196 crore in the previous year.