Dr. Reddy's laboratories completes acquisition of Wockhardt's select business divisions

▴ Dr. Reddy's laboratories completes acquisition of Wockhardt's select business divisions
Dr. Reddy's Laboratories Ltd. announces that it has completed the acquisition of select divisions of Wockhardt Limited.

Dr. Reddy's Laboratories Ltd.announces that it has completed the acquisition of select divisions of Wockhardt Limited’s branded generics business in India and a few other international territories of Nepal, Sri Lanka, Bhutan and Maldives.

The business comprises of a portfolio of 62 brands in multiple therapy areas such as Respiratory, Neurology, VMS, Dermatology, Gastroenterology, Pain and Vaccines, which would transfer to Dr. Reddy’s along with related sales and marketing teams; and the manufacturing plant located in Baddi, Himachal Pradesh with all plant employees.

On February 12, 2020, Dr. Reddy’s signed a Business Transfer Agreement with Wockhardt, to acquire the above-referred business undertaking for an upfront consideration of Rs.1,850 Crores.

In view of the COVID-19 pandemic and the consequent government restrictions, there has been a reduction in the revenue from the sales of the products forming part of the Business Undertaking during March & April 2020. Subsequently, through an amendment to the BTA, Dr. Reddy’s and Wockhardt have agreed that the deal consideration shall now be up to Rs. 1,850 Crores, to be paid as per the following terms:

a) an amount of Rs. 1,483 Crores paid on the date of closing

b) an amount of Rs. 67 Crores to be deposited in an escrow account which shall be released subject to adjustments for, inter alia, net working capital, employee liabilities and certain other contractual and statutory liabilities
c) an amount of Rs. 300 Crores which shall be released as follows:

If the revenue from sales of the products forming part of the Business Undertaking during the 12 months post-closing exceeds Rs. 480 Crores, Dr. Reddy’s will be required to pay to Wockhardt, an amount equal to 2 times the amount by which the revenue exceeds Rs. 480 Crores, subject to the maximum of the Holdback Amount.

G V Prasad, Co-Chairman and Managing Director of Dr. Reddy’s said, “This deal is in line with our strategic focus on India and has paved a path for accelerated growth and leadership in the domestic market. We believe that the acquired portfolio offers a good growth potential for us. We welcome the employees joining us from Wockhardt to the family of Dr. Reddy’s.”

Tags : #DrReddy #Wockhardt

Related Stories

Loading Please wait...

-Advertisements-




Trending Now

Surviving Against the Odds: Steven Spinale's Journey After an Ingrown Hair Turns DeadlyMarch 29, 2024
10 reasons why media research and Planning are essential in Healthcare marketingMarch 29, 2024
The Surprising Link Between Sleep and Age Perception: What You Need to KnowMarch 29, 2024
The Dark Side of Beauty: Kidney Damage from Hair Straightening TreatmentsMarch 29, 2024
The Dark Side of Beauty: Kidney Damage from Hair Straightening TreatmentsMarch 29, 2024
Avance Clinical at World Vaccine Congress to Share Latest Vaccine Clinical Trial News Including an HIV-1 StudyMarch 29, 2024
Sexual wellness superstore, Love Depot launches digital campaign to deliver every desireMarch 28, 2024
Recharge Your Life: Simple Ways to Boost Your Physical and Mental EnergyMarch 28, 2024
The Neurological Toll of Common Household Chemicals: Insights from Recent ResearchMarch 28, 2024
The Aging Puzzle: Decoding the Mechanisms of AgingMarch 28, 2024
The Double-Edged Sword of Kala-azar Treatment: Shedding Light on Eye ComplicationsMarch 28, 2024
FTCCI Launches Industry-Academia Connect to improve the employability of Engineering Graduates and address the growing demand for Talent in Emerging TechMarch 27, 2024
NTT and Olympus Begin World's First Joint Demonstration Experiment of Cloud Endoscopy SystemMarch 27, 2024
NTT and Olympus Begin World's First Joint Demonstration Experiment of Cloud Endoscopy SystemMarch 27, 2024
2nd Edition of IIFL JITO Ahimsa Run for peace & for non-violence to be held on 31st MarchMarch 27, 2024
Brij Hotels Announced 4 Million in Series A Funding March 27, 2024
Combatting Childhood Sedentariness: The Key to Preventing Premature Vascular DamageMarch 27, 2024
Crucial Findings: Unlocking Paths to Combat Ebola's DevastationMarch 27, 2024
Guarding Against Disease: The Crucial Role of Oral Hygiene in Preventive HealthcareMarch 27, 2024
Sanofi & Cipla announce exclusive distribution partnership to expand reach of CNS portfolio in IndiaMarch 26, 2024