Hyderabad-based Dr. Reddy's Laboratories ($RDY) will splash out $350 million to buy an unspecified mix of 8 generic drugs from Teva ($TEVA) as the Israeli firm divests the products as part of antitrust provisions for its purchase of the generics unit of Allergan ($AGN).
The deal comes as Dr. Reddy's has faced headwinds in the U.S. on sales and from the U.S. FDA for manufacturing quality issues for Indian plants that export to the market. Net profit for the company's fourth quarter that ended on March 31 dropped 86%.
"The portfolio being acquired is a mix of filed ANDAs (abbreviated new drug application) pending approval and an approved ANDA, and comprised of complex generic products across diverse dosage forms," Dr. Reddy's said in a press release.
Dr. Reddy's said the purchase will be financed with an unspecified mix of cash available and existing credit lines.
The firm added that moving annual sales for the branded versions of the products came in around $3.5 billion for the year ended April 2016.
In May Dr. Reddy's--India's second largest drugmaker--expanded its OTC and U.S. offering when it bought 6 over-the-counter brands in the cough-and-cold, pain, and dermatology categories in the U.S. from New Jersey-based Ducere Pharma.
- here's the release
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