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NEW DELHi: Shares of Dr Reddy’s Laboratories climbed nearly 4 per cent in Monday’s trade after the company entered into a definitive agreement for the sale of its API manufacturing business unit located in Jeedimetla, Hyderabad.
The drug maker sold the unit to Therapiva in a slump sale that included unit’s fixed assets (land and building), current assets, current liabilities, and its employees, the company said in a regulatory filing.
It did not disclose the deal amount.
Following the announcement, the stock rose 3.85 per cent to hit a high of Rs 2,544.75 on BSE.
"The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures," said Sanjay Sharma, Executive Vice President Head, Global Manufacturing Operations.
Therapiva is a joint venture between Omnicare Drugs India Private and Laxai Life Sciences.
"This acquisition represents a unique opportunity to further strengthen Therapiva's position as a premier supplier of APls.
There is a strong cultural fit between our companies and we are excited to welcome the employees of Dr.
Reddy's to accelerate our ambitious growth plans," said Vamsi Maddipatla, CEO of Therapiva and Laxai Life Sciences.
