Agreement also covers BASF’s Lousiana production plant.
Dr. Reddy’s Laboratories plans to acquire BASF’s pharmaceutical contract manufacturing business and related facility in Shreveport, LA. The transaction is expected to close by the first quarter of fiscal year 2009.
This segment of BASF involves the manufacturing of generic prescription and over-the-counter products for branded and generic companies in the U.S. It reportedly recorded revenues of $43 million for 2007.
Dr. Reddy’s will gain customer contracts, related ANDAs and NDAs, and trademarks. The Louisiana facility, which will also come under Dr. Reddy’s control, is designed to manufacture solid, semisolid, and liquid-dosage forms.
“The acquisition of BASF’s finished-dosage manufacturing facility in the U.S. will enable us to strengthen our supply chain for North America and provide a strong platform for pursuing additional growth opportunities,” notes Satish Reddy, managing director and COO.