GSK sells antibiotics assets to Dr Reddy’s
pharmafile | November 24, 2010 | News story | Manufacturing and Production, Sales and Marketing | Antibiotics, Dr Reddy's, GSK
Dr. Reddy’s Laboratories has bought a US oral penicillin facility from GSK, along with the US marketing rights to the products.
The penicillin manufacturing site in Bristol, Tennessee, and rights for the Augmentin and Amoxil brands will be transferred to the Indian generics firm, while GSK will retain the rights for these brands outside the United States.
The acquisition of the US facility is significant for Dr Reddy’s, which has its main manufacturing base in India. The generics company is looking to expand into the US market, the biggest single generics market in the world.
Abhijit Mukherjee, President and Head of Dr. Reddy’s global generics business 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.”
He added: “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 divestment also suits GSK which, like other major pharma companies, is looking to streamline its manufacturing base and invest in new hi-tech facilities and new product areas.
“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 and emerging markets supply.
The terms of the deal have not been disclosed, but the sale will be finalised in early 2011.
Andrew McConaghie
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