Dr Reddy’s acquires BASF’s contract manufacturing business

Hyderabad-based, Dr Reddy's Laboratories has informed that the company has acquired BASF's pharmaceutical contract manufacturing business and related facility in the US for an undisclosed amount.

The acquisition will include relevant business, customer contracts and trademarks as well as the manufacturing facility and assets of BASF at Shreveport.

The 42-acre Shreveport facility currently manufactures and packages prescription and over-the-counter pharmaceutical products, liquids, tablets and creams for the North American market. The deal also includes a tolling and supply agreement.

Dr. Reddy's plans to finance the deal with internal cash reserves or other committed credit facilities.

BASF's contract manufacturing business makes generic prescription and over-the-counter products for branded and generic companies in the United States. It currently employs around 150 persons and generated revenue of $43 million in 2007.

The deal is expected to be completed within the first quarter of fiscal year 2008/09.