UCB sells Indian established brands business

In line with its strategic focus, UCB (Euronext Brussels: UCB), Belgium’s largest pharma company, has entered an agreement with Indian drugmaker Dr Reddy’s (BSE: 500359) to sell its established brands in India, Nepal, Sri Lank and the Maldives, including its franchises in the areas of allergies and respiratory disorders.

The amount of the transaction amounts to 8.0 billion rupees (~ $128.4 million). The agreement includes the transfer of about 350 members of staff to Dr Reddy’s. The revenues of the acquired business are around 1.50 billion rupees for calendar year 2014. The transaction is expected to be closed in the first quarter of the 2015-16 financial year, Dr Reddy's said.

The agreement is in line with UCB’s strategy to provide the best value for patients and to focus on bringing them innovative drugs while ensuring its mature brands portfolio continues to reach as many people as possible. The accord does not impact UCB’s 2015 financial guidance.