Dr Reddy's acquires Rx business in Russia and other CIS markets; reports 1st-qtr FY 2012 results

Generics company Dr Reddy’s Laboratories (NYSE: RDY), India’s second largest drugmaker, has entered into an agreement with JB Chemicals & Pharmaceuticals to acquire their pharmaceutical prescription portfolio in the Russia and other Commonwealth of Independent States (CIS) regions.

The agreement involves acquisition of 20 brands, key ones being the anti-infective Metrogyl (metronidazole) and Jocet (albuterol) - which gives the company entry into the $256 million cough and cold market, for a consideration of $34.85 million. Dr Reddy’s has also entered into a supply agreement with JB Chemicals for the continued manufacturing and supply of these products associated with the acquired brands. Dr. Reddy’s also gains access to several hospital products in the pipeline, quite a few of which would be first generic to launch. Two further brands - Unispaz and Metrogyl gel & Metrogyl vaginal gel - further strengthen Dr Reddy’s portfolio.

Commenting on the acquisition, Satish Reddy, managing director and chief operating officer of Dr Reddy’s said: “Russia is one of our leading markets where we enjoy a strong equity with stakeholders. This acquisition will help expand our prescription, hospital and over-the-counter (OTC) portfolio, complement our existing strong basket of products and add to our growth aspirations in the Russia and other CIS region.”