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Dr Reddy's gains after acquiring select UCB brands in India

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Capital Market
Last Updated : Apr 01 2015 | 4:01 PM IST

Dr Reddy's Laboratories rose 0.52% to Rs 3.505.60 at 14:30 IST on BSE after the company said it will acquire select portfolio of the established products business of UCB in India for Rs 800 crore.

The company made announcement during market hours today, 1 April 2015.

Meanwhile, the BSE Sensex was up 173.56 points, or 0.62%, to 28,131.05.

On BSE, so far 9,857 shares were traded in the counter, compared with an average volume of 24,553 shares in the past one quarter.

The stock hit high of Rs 3,564.95 and low of Rs 3,501.55, so far during the day. The stock hit a record week high of Rs 3,662 on 1 December 2014. The stock hit a 52-week low of Rs 2,250 on 19 May 2014.

The stock had outperformed the market over the past one month till 31 March 2015, rising 4.11% compared with 4.78% decline in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 7.47% as against Sensex's 1.67% rise.

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The large-cap pharma firm has an equity capital of Rs 85.19 crore. Face value per share is Rs 5.

Dr Reddy's Laboratories announced that it has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, in the territories of India, Nepal, Sri Lanka and Maldives. The acquired business is being sold on a slump sale basis. The transaction includes approximately 350 employees engaged in operations of the India Business. The revenues of the acquired business is approximately Rs 150 crore for calendar year 2014.

The acquisition of UCB's existing brand equity in the areas of dermatology, respiratory and pediatrics diseases will further expand Dr Reddy's therapy footprint into these fast growing areas.

The transaction is expected to be closed in Q1 June 2015.

Dr Reddy's Laboratories' consolidated net profit fell 7.1% to Rs 574.53 crore on 9.2% rise in total income to Rs 3881.86 crore in Q3 December 2014 over Q3 December 2013.

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First Published: Apr 01 2015 | 2:15 PM IST

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