GSK to sell US penicillin plant and products to Dr Reddys
Allows Dr Reddys to scale up generics business in US
GlaxoSmithKline (GSK) has agreed to sell its penicillin manufacturing plant in Bristol, Tennessee, US to Dr Reddys Laboratories of India.
GSK will also sell the US rights to its Augmentin and Amoxil penicillin brands to Dr Reddys, while retaining the existing rights for these brands outside the US.
The deal is expected to close within the first six months of 2011.
Further financial terms and conditions of the agreement have not been disclosed.
‘This acquisition allows us to enter the US penicillin-containing antibacterial market segment and serve the needs of our customers. This is in line with our strategy to significantly scale up our generics business in North America, while providing an opportunity to explore additional synergy with our other businesses,’ said Abhijit Mukherjee, president, Global Generics Business, Dr Reddys Laboratories.
Jean-Paul Reynaud, Senior Vice President, Antibiotics and Emerging Markets Supply, GSK added: ‘The sale of this site and divestiture of these products in the US are a positive step forward for this manufacturing facility. The Bristol site has had a long and successful history with GSK. This sale will enable the facility to continue to provide oral penicillin-containing antibacterial products to meet the needs of patients in the US, and will allow GSK to focus resources on our newer portfolio of differentiated products.’
