Dr Reddy's Laboratories has inked a pact with Teva Pharmaceutical and an affiliate of Allergan Plc to buy a portfolio of eight abbreviated new drug applications (ANDAs) in the US for US #350 million (around Rs 2,300 crore) in cash.
The portfolio consists of products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan's generics business, the Hyderabad-based firm said.
The portfolio being acquired is a mix of filed ANDAs pending approval and an approved ANDA and comprised of complex generic products across diverse dosage forms, Dr Reddy's Laboratories said in a statement.
The combined sales of the branded versions of the products in the US is around US $3.5 billion, it added.
"This transaction will add strength to our product portfolio, help us be more relevant in the US market and also create new opportunities for growth," GV Prasad, Co-Chairman and CEO of Dr Reddy's Laboratories said.
The acquisition of these ANDAs is also contingent on the closing of the Teva/Allergan generics transaction and approval by the US Federal Trade Commission of Dr Reddy's as a buyer.
"The acquisition of these attractive ANDAs from Teva will enhance our short-to-midterm aspirations and is consistent with our growth initiatives to identify inorganic opportunities to expand our base business," Dr Reddy's, Executive Vice president and Head of North America Alok Sonig said.
The company has a strong track record in the US market with over 79 filed ANDAs pending approval, of which we believe 18 have first-to-file status, he added.
Dr Reddy's is acquiring the portfolio on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities, the company said.
