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Dr Reddy's in talks to buy UCB India business for $135 million - source

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Reuters MUMBAI
Last Updated : Mar 10 2015 | 4:28 PM IST

MUMBAI (Reuters) - Drugmaker Dr Reddy's Laboratories Ltd is in talks to acquire the Indian operations of Belgian pharmaceutical company UCB SA for about $135 million, said a person with direct knowledge of the matter.

The acquisition would be funded by Dr Reddy's existing cash balance, the person said. He declined to be identified because he was not authorised to talk to media.

UCB was not immediately available for comment. A Dr.Reddy's spokesman declined to comment.

Dr Reddy's had cash and market investments worth $456 million, according to a company presentation in February.

UCB's Indian unit employs more than 450 employees and its product portfolio in India includes drugs used for the treatment of allergies, epilepsy and respiratory disorders, according to its website.

The talks come as large Indian drugmakers such as Dr Reddy's and Glenmark Pharmaceuticals Ltd seek to bolster their presence in the domestic market, as some key export markets such as Russia suffer an economic slowdown.

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($1 = 62.6200 rupees)

(Reporting by Abhishek Vishnoi; Additional reporting by Zeba Siddiqui in MUMBAI and Robert-Jan Bartunek in BRUSSELS; Editing by Miral Fahmy)

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First Published: Mar 10 2015 | 4:16 PM IST

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