An 1850 Cr. deal was stuck between Dr. Reddy’s and Wockhardt according to a statement published today. Dr. Reddy’s will be taking over some of the selected generic businesses under Wockhardt’s brand name in India and several international locations in Nepal, Bhutan, Maldives and Sri Lanka.
62 brands of Wockhardt in total has been acquired by Dr. Reddy’s portfolio of which include products in neurology, respiratory, dermatology, VMS, pain and vaccines and gastroenterology. Wockhardt’s manufacturing plant that is located in Baddi, Himachal Pradesh will also be taken over by Reddy’s along with the sales and marketing teams for the brands that currently exist at Wockhardt. It
is on a slump sale basis that the business has been transferred.
The potential of the portfolios acquired by Dr. Reddy’s had yielded a total revenue of 594 Cr. in INR in the financial year of 2018-2019 under the Wockhardt brand name. Moreover, for the nine months of the financial year of 2019-2020 until it got acquired, the same portfolios have yielded revenue of 377 Cr. in INR. The reason for Dr. Reddy’s acquisition of these products is because of its wish to expand nationally and also on an international basis. For the last financial year i.e 2018-2019, the domestic formulations of Dr. Reddy’s yielded a revenue of 2620 Cr in INR which is 17 percent of the total revenue which is 15,385 Cr. in INR. The company has experienced and year on year growth of 123 percent which is the reason it bought Wockhardt for the expanded productivity of domestic formulations. This will help the company in the expansion of manufacturing units internationally.
GV Prasad, Co-Chairman and Managing Director of Dr. Reddy’s informed media, “India is an important market for us and this acquisition will help in considerably scaling-up our domestic business.” The portfolios that have been acquired by the company will increase the brand value of Dr. Reddy products as now it will administer the growth provided by brands like Zedex, Bro-zedex, Practin, Biovac and Triptomer among several others. It will also facilitate the company in getting ahead of the competition in the pharmaceutical industry and be among the top 10 pharma manufacturers of the country.