Dr Reddys to acquire Betapharm
Dr Reddys Laboratories will acquire the German firm for 480 million euro, edging out Ranbaxy.india Updated: Feb 17, 2006 11:44 IST
Bringing an end to the closely contested race for Germany's fourth largest generic firm Betapharm, Dr Reddys Laboratories said on Thursday that it will acquire the German firm for 480 million euro, edging out Ranbaxy.
DRL informed the stock exchanges that it would acquire a 100 per cent stake in Betapharm, a company promoted by 3i, Europe's leading private equity house and has entered into a definitive agreement with 3i for the same.
The transaction would be funded using a combination of Dr Reddys' internal cash reserves and committed credit facilities.
"We see our investment in Betapharm as a key strategic initiative towards becoming a mid-sized global pharmaceutical company with strong presence in all key pharmaceutical markets," DRL Chairman Anji Reddy said.
Ranbaxy and DRL, both had outbid France's Sanofi-Aventis and Isreal's Teva and were in the race to pick up 3i's 80 per cent stake in Betapharm.
Founded in 1993, Betapharm markets high-quality generic drugs with focus on long-term therapy products with high prescription rates. Its current portfolio comprises about 145 marketed products.
The financial terms and conditions of the transaction were not disclosed and the transaction is subject to customary closing conditions, expected to close in the first week of March 2006.