Drug major Dr Reddy’s Laboratories (DRL) on Monday announced its decision to buy Dutch drug firm OctoPlus for €27.4 million (Rs. 192 crore) as it looks to expand its research and development.
The offer price is 30% higher than the market capitalisation of OctoPlus as on October 19, Dr Reddy’s said in a statement.
OctoPlus is a service-based speciality pharmaceutical company that develops injectable dosages and provides various other clinical services.
“As we globalise our R&D efforts, we are looking forward to build a research base in Leiden (Netherlands),” said GV Prasad, vice chairman and chief executive officer, DRL. “The acquisition will help us ramp up our technology capabilities in drug delivery."
DRL, which is keen to expand further into the fast-growing fee for service business, will retain OctoPlus as a standalone entity to develop speciality generics.
The transaction is expected to be completed by the end of the current fiscal year, said Prasad.
Following the new, the company’s shares closed up 1% at Rs. 1,722 on the Bombay Stock Exchange on Monday.