Supplier News Breaks
GSK to sell U.S. penicillin facility, products to Dr. Reddy's
November 23rd, 2010
HYDERABAD, India – GlaxoSmithKline PLC has agreed to the sale of its United States oral penicillin facility and product portfolio to Dr. Reddy's Laboratories.
Dr. Reddy's said Tuesday that under the agreement, GSK will transfer ownership of its penicillin manufacturing site in Bristol, Tenn., and the rights for the Augmentin and Amoxil brands in the United States to Dr. Reddy's. GSK will retain the existing rights for those brands outside the United States.
"We are excited about this acquisition, as it allows us to enter the United States penicillin-containing antibacterial market segment and serve the needs of our customers and patients through manufacturing capabilities that did not previously exist within Dr. Reddy's," Abhijit Mukherjee, president of global generics business for Dr. Reddy's, said in a statement. "This acquisition is in line with our strategy to significantly scale up our generics business in North America while providing an opportunity to explore additional synergy with our other businesses.”
Financial terms of the deal weren't disclosed. The transaction is expected to close within the first half of the calendar year 2011.
"The sale of this site and divestiture of these products in the United States are a positive step forward for this manufacturing facility," commented Jean-Paul Reynaud, senior vice president for antibiotics and emerging markets supply at GSK. "The Bristol site has had a long and successful history with GSK. This sale will enable the facility to continue to provide oral penicillin-containing antibacterial products to meet the needs of patients in the United States and will allow GSK to focus resources on our newer portfolio of differentiated products."
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