The country’s second largest drugmaker Dr. Reddy's Laboratories, is set to acquire Octopus, a Netherlands-based specialty pharmaceutical company for €27.4 million ($36 million/ Rs. 193 crore) as part of its plan to expand its research and development (R&D) base.
G.V. Prasad, chief executive of Dr. Reddy's said," As we globalise our R&D efforts, we are looking forward to build a research base in Leiden (Netherlands). The acquisition will help us ramp up our technology capabilities in drug delivery." This deal will help expand the expertise and scientific capabilities of Dr Reddy’s.
The offer values 100 per cent of the issued and outstanding ordinary shares of OctoPlus at €27.4 million, according to a statement. The offer price is 30 per cent higher to the market capitalisation of OctoPlus as on October 19, Dr. Reddy's said in a notification to the Bombay Stock Exchange. The acquirer firm also holds an irrevocable commitment from shareholders having more than 50 per cent of total issued shares of OctoPlus, it said.
Jan Egberts, CEO of OctoPlus noted, “Over the last few months, we have reviewed a number of alternative strategies for our company. OctoPlus’ development and manufacturing platform perfectly fits with Dr. Reddy’s marketing abilities”.
“Dr. Reddy’s is keen to further expand into the fast growing Fee for Service business. To that extend they will retain OctoPlus as a specialist stand alone entity to develop specialty generics for Dr. Reddy’s. OctoPlus will become Dr. Reddy’s centre of excellence for complex injectables with retention of our highly skilled and dedicated professionals in our Leiden facility," he said.
OctoPlus develops injectable dosages and provides various other clinical services. Total revenues of OctoPlus for the first six months of the calendar year was €4.8 million, with a net loss of €5.8 million.