Dr Reddy's wraps up betapharm buyout

Dr Reddy's Laboratories (DRL) has completed acquisition of betapharm, its mega overseas deal valued at €480 million (Rs 2,668 crore).

The company has signed the deal with betapharm, the fourth-largest generic pharmaceuticals company in Germany, last month.

Satish Reddy, managing director and chief operating officer, said: "The strategic investment in betapharm is a step forward towards realising Dr Reddy's strategic intention of building a global generics business with strategic presence in all key markets," he added.

Informing the stock exchanges, DRL sources said the complete acquisition of betapharm group, was done in cash.

DRL's decision to buy acquire betapharm follows an API production facility buyout in Mexico for $59 million (Rs 265.5 crore). This would facilitate a bigger platform for DRL to establish a strong presence in the fast growing global generics market.

The combination of Dr Reddy's and betapharm offers an excellent opportunity to build on the unique strengths of each company to emerge as a leading generics player in Europe.

Betapharm, which markets established generic drugs with focus on long-term therapy products with high prescription rates, is enjoying a market share of about 3.5 per cent in the German generics market.

Betapharm's current portfolio comprises about 145 marketed products. Located in Germany, betapharm houses about 370 employees including a sales force of about 250 with gross turnover of €164 million in 2005.