Dr Reddy’s Laboratories, country's second-biggest drug-maker, has entered into a definitive agreement with the Dow Chemical Company to acquire a portion of Dowpharma’s Small Molecules business associated with its United Kingdom sites in Mirfield and Cambridge.

Dowpharma is a diversified chemical company. It has a global presence in pharmaceuticals, fresh water, food, paints, packaging and personal care products. The company has registered annual sales of US$ 53.5 billion in 2007.

The acquisition will include the relevant business, customer contracts, associated products, process technology, intellectual property, trademarks as well as the transfer of the facilities at Mirfield and Cambridge in the United Kingdom.

However, the financial terms and conditions of the transaction were not disclosed.

Hyderabad-based, Dr. Reddy's will also have a non-exclusive license to Dow's Pfenex Expression Technology™ for biocatalysis development.

The transaction is scheduled to close on April 30, 2008 pending regulatory approval.