Dr. Reddy's to buy GSK's penicillin site
HYDERABAD, India A generic drug maker has entered an agreement to purchase another drug maker's U.S. penicillin site.
Dr. Reddy's and GlaxoSmithKline have inked a deal in which GSK will transfer ownership of its penicillin manufacturing site in Bristol, Tenn., and rights for the Augmentin and Amoxil brands in the United States to Dr. Reddy’s, an India-based drug maker.
This transaction is expected to close within the first half of calendar year 2011. Further financial terms and conditions of the agreement were not disclosed.
“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,” said Abhijit Mukherjee, president of global generics for 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.”