GlaxoSmithKline plc (GSK) and Dr. Reddy's Laboratories (NYSE:RDY) today announced that the companies have signed an agreement relating to GSK's United States oral penicillin facility and product portfolio. Under the agreement, GSK will transfer ownership of its penicillin manufacturing site in Bristol, Tennessee, United States, and rights for the Augmentin® and Amoxil® brands in the United States to Dr. Reddy's. GSK will retain the existing rights for these brands outside the United States.
This transaction is targeted to close within the first half of the calendar year 2011. Further financial terms and conditions of the agreement have not been disclosed.
"The sale of this site and divestiture of these products in the United Statesare 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 United States, and will allow GSK to focus resources on our newer portfolio of differentiated products," said Jean-Paul Reynaud, Senior Vice President, Antibiotics and Emerging Markets Supply.
Abhijit Mukherjee, President & Head - Global Generics Business, Dr. Reddy's Laboratories, said, "We are excited about this acquisition, as it allows us to enter the United States penicillin-containing antibacterial market segment and serve the needs of our customers & patients through manufacturing capabilities that did not previously exist within Dr. Reddy's. This acquisition 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."
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information go to us.gsk.com, follow us on twitter.com/GSKUS or visit our blog (www.morethanmedicine.us.gsk.com/blog/).
Dr. Reddy's -Established in 1984, Dr. Reddy's Laboratories (NYSE: RDY) is a global pharmaceutical company. We fulfill our purpose of providing affordable and innovative medicines through three core businesses: Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. Our products are marketed globally, with a focus on India, US, UK, Germany and Russia.