Dr. Reddy's Buying Eight Drugs From Teva for U.S. Market
June 11 2016 - 1:58PM
Dow Jones News
By Suryatapa Bhattacharya
NEW DELHI -- India's Dr. Reddy's Laboratories said it has agreed
to buy eight drugs from Israel's Teva Pharmaceutical Industries
Ltd. for $350 million, as the Indian drugmaker seeks to gain a
foothold in the U.S. market by selling more sophisticated
treatments.
"The transaction will add strength to our product portfolio,
help us be more relevant in our U.S. market and create new
opportunities for growth, " G.V. Prasad, chief executive of Dr.
Reddy's said in a statement.
The medicines are "complex generic products," Dr. Reddy's said
on Saturday in a regulatory filing. One of the treatments has U.S.
Food and Drug Administration approval already, according to Calving
Printer, a spokesman for Dr. Reddy's. The others are still
waiting.
Mr. Printer declined to offer details on the drugs citing
"mutual privileges and confidentialities" between buyer and
seller.
Teva is selling the drugs to Dr. Reddy's as part of its planned
$4.2 billion acquisition of Allergan PLC's generics business.
The U.S. Federal Trade Commission has yet to approve the
purchase of the drugs,, which India's second-largest drugmaker by
sales said is contingent on the completion of the Israeli company's
deal with Allergan.
The U.S. is a key market for Indian generic drugmakers.
Indian companies are spending at an unprecedented rate to
develop new drugs that will give them a leg up from the highly
competitive and increasingly commoditized generics market. Dr.
Reddy's spent $253 million in 2015 on research and development, up
33% from a year earlier.
Write to Suryatapa Bhattacharya at sbhattacharya@wsj.com
(END) Dow Jones Newswires
June 11, 2016 13:43 ET (17:43 GMT)
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