Hyderabad-based Dr Reddy’s Laboratories Ltd, India's second-largest drugmaker by sales, has acquired Habitrol brand, a nicotine replacement therapy, from Novartis Consumer Health Inc, for an undisclosed amount, as per a stock market disclosure.
The acquisition was done following issuance of a consent order from the US Federal Trade Commission (FTC) on November 26, 2014.
The drugmaker had earlier signed an agreement with Novartis to acquire the title and rights of Habitrol and to market the product in the US market.
Post this acquisition, the company has assumed responsibility for the product and will commence shipment in the market shortly, it said in the filing.
Habitrol helps quit smoking as it releases nicotine into bloodstream through the skin to replace the nicotine accustomed to from smoking and thereby stops the feelings of craving on wearing. It had US sales of more than $58 million in 2013.
Swiss firm Novartis manufactures consumer health-care products, including skin-care aids, cold-and-flu remedies, toothpaste and indigestion remedies.
Dr Reddy’s is the sole generic firm in anti-depression drug divalproex and decitabine used for the treatment of myelodysplastic syndromes (MDS), which often leads to anemia.
Recently, the firm got joint approval along with US-based Endo for selling generic version of Valcyte, an antiviral medicine made by Roche. Valcyte has a market size of around $500 million in the US and can add $30-40 million to the sales of Dr Reddy's.
For the quarter ended September 30, 2014, Dr Reddy's posted consolidated net profit of Rs 574 crore compared with Rs 690 crore in the year-ago period. Total income increased from Rs 3,421.12 crore to Rs 3,614.37 crore.
During the quarter, the firm launched nine new generic products, filed 10 new product registrations and 28 DMFs globally.
Dr Reddy's Laboratories' scrip closed at Rs 3191.05, up 1.29 per cent on BSE in a strong Mumbai market on Wednesday.
(Edited by Joby Puthuparampil Johnson)