HYDERABAD, India, and PRINCETON, N.J. — Dr. Reddy’s Laboratories plans to buy eight Abbreviated New Drug Applications (ANDAs) in the United States from Teva Pharmaceutical Industries Ltd. and an affiliate of Allergan plc for $350 million in cash.
Dr. Reddy’s, which announced the agreement over the weekend, said the acquired products are being divested by Teva as part its closing of the acquisition of Allergan’s generics business.
The portfolio being acquired, a mix of filed ANDAs pending approval and an approved ANDA, encompasses complex generic products across diverse dosage forms, Dr. Reddy’s reported. The combined U.S. sales of the branded versions of the products totals about $3.5 billion for the latest 12 months ended in April, according to IMS Health data cited by Dr. Reddy’s.
“This transaction will add strength to our product portfolio, help us be more relevant in our U.S. market and also create new opportunities for growth,” Dr. Reddy’s co-chairman and chief executive officer G.V. Prasad stated.
The company noted that the purchase of the ANDAs is contingent on the completion of the Teva-Allergan generics transaction and the Federal Trade Commission’s approval of Dr. Reddy’s as a buyer.
“Dr. Reddy’s Laboratories has a strong track record in the U.S. market, with over 79 filed ANDAs pending approval, of which we believe 18 have first-to-file status,” commented Alok Sonig, executive vice president and head of North America at Dr. Reddy’s. “The acquisition of these attractive ANDAs from Teva will enhance our short- to mid-term aspirations and is consistent with our growth initiatives to identify inorganic opportunities to expand our base business.”
The deal marks the second acquisition that Dr. Reddy’s has announced in recent weeks. In late May, Dr. Reddy’s said it bought six over-the-counter health product brands — including Bufferin, Doan’s, Comtrex, Nupercainal, Myoflex and Cruex — from Ducere Pharma LLC. The move represent’s Dr. Reddy’s entry into the OTC health arena.
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