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      Dr Reddy's buys GSK's oral penicillin facility in US


      US-based pharma major GlaxoSmithKline and Indian drug giant Dr Reddy’s Laboratories, have signed an agreement relating to GSK’s United States oral penicillin facility and product portfolio. Under the agreement, GSK will transfer ownership of its penicillin manufacturing site in Bristol (Tennessee), United States, and rights for Augmentin and Amoxil brands in United States to Dr Reddy’s. GSK will retain existing rights for these brands, outside the United States.

      This transaction is targeted to close within the first half of the calendar year 2011. Further, financial terms and conditions of the agreement have not been disclosed.

      Abhijit Mukherjee, president (Global Generics Business), Dr Reddy's Laboratories, said, “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. 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.”

      “The sale of this site and divestiture of these products in the United States are a positive step forward for this manufacturing facility. 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,” said Jean-Paul Reynaud, senior vice president (Antibiotics & Emerging Markets Supply.

      Nov 30, 2010


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