Dr Reddy's acquires BASF's pharmaceutical contract manufacturing business in US

Dr Reddy's Laboratories has signed a definitive agreement to acquire BASF's manufacturing facility in Shreveport, Louisiana, and the related contract manufacturing business for finished pharmaceuticals.

The 42-acre Shreveport facility currently manufactures and packages prescription and over-the-counter pharmaceutical products, liquids, tablets and creams for the North American market. BASF is divesting the site and related business in order to concentrate on core businesses in its Care Chemicals division, which include custom synthesis services, excipients and active ingredients for the pharmaceuticals industry.

The facility is designed to manufacture solid, semi-solid and liquid dosage forms, and currently employs approximately 150 people.

The acquisition will include the relevant business, customer contracts, related ANDAs and NDAs, trademarks, as well as the manufacturing facility and assets at Shreveport, Louisiana. It also includes a tolling and supply agreement. The business recorded revenues of US$43m (Euro 27.7m) in 2007.

"Dr Reddy's is committed to building a leading Global Generics business over the next few years," said Satish Reddy, managing director and coo, Dr Reddy's Laboratories. "The acquisition of BASF's finished dosage manufacturing facility in the US will enable us to strengthen our supply chain for North America and provide a strong platform for pursuing additional growth opportunities."

Mark Hartman, president, North America Generics, Dr Reddy's Laboratories, added: "We are excited about this acquisition as this facility provides us with an additional platform to further expand our portfolio of prescription generics, otc capabilities and product portfolio and the ability to supply generic products to US government agencies."