Dr. Reddy’s cost cutting measures gain momentum; divests API manufacturing site

By PharmaCompass

2018-10-18

Impressions: 112 Article

Earlier this month, Dr. Reddy's Laboratories (DRL) had announced the sale of its antibiotic manufacturing site and its related assets in Bristol, Tennessee, to Neopharma Inc, a wholly owned subsidiary of the UAE’s largest drug manufacturer headquartered in Abu Dhabi.

The Indian drug major’s cost cutting measures have gathered momentum. This week, DRL announced it is selling its API manufacturing unit located in Jeedimetla, Hyderabad, to Therapiva Private Limited.

In a regulatory filing, DRL said it has entered into a definitive agreement for the sale of this unit to Therapiva, a joint venture between Omnicare Drugs India (a wholly owned subsidiary of Neopharma LLC, Abu Dhabi) and Laxai Life Sciences.

This divestiture is being done by way of slump sale (as a going concern) and includes all related fixed assets (land and building), current assets, current liabilities, and its employees, the company statement said.

“The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures,” Sanjay Sharma, Executive Vice President and Head, Global Manufacturing Operations of DRL said. “We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset,” he added. However, the company did not disclose any financial details.

PharmaCompass reviewed the Written Confirmation, issued by India’s drug regulator, to the site and found that the site manufactures Sumitriptan Succinate, Topiramate, Montelukast Sodium, Olanzapine, Doxazosine, Ondansetron, Donepezil and Escitalopram.

The Written Confirmation is a certificate issued to certify compliance with standards of good manufacturing practices (GMP) for a manufacturing site are at least equivalent to the GMP of the European Union.

The PharmaCompass Newsletter – Sign Up, Stay Ahead

Feedback, help us to improve. Click here

Image Credit : #Phisper Infographic by SCORR MARKETING & PharmaCompass is licensed under CC BY 2.0

“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

NEWS

DRUGS & DEVELOPMENTS

MARKET INTEL by PharmaCompass