The Indian based pharmaceutical company, Dr. Reddy’s (NSE: DRREDDY, BES: 500124, NYSE: RDY) announced their intention today to acquire the product portfolio of TEVA. They’ve entered into a definitive agreement with Teva Pharmaceutical, as well as an affiliate of Allergan PLC. The agreement will see Dr. Reddy’s obtain 8 ANDAs, abbreviated new drug applications, in the United States. The total for the transaction is expected to be $350 million. The transaction will need approval from the United States Federal Trade Commission and is subject to the closing of the Teva and Allergan generics transaction.
CEO of Dr. Reddy’s, G.V. Prasad, insisted that the enhance the company’s portfolio, while also helping to make the company “more relevant in our U.S. market”. Dr. Reddy’s will make the transaction on a cash-free and debt-free basis. Finances for the transaction will come from on-hand case, as well as available borrowing from existing credit entities. Additional information regarding the acquisition can be found by checking out the company’s press release.
Dr. Reddy’s Laboratories is a multinational pharmaceutical company, which was founded in 1984, by Kallam Anji Reddy. Although based out of Hyderabad, India, the company’s products are exported to other countries, including the United States and Europe. In other news, the company announced that their United States subsidiary, Promius Pharma LLC, was launching Servnio Spray at the beginning of this month. The topical steroid was approved by the FDA in February and will be made available to patients 18 years and old. It is primarily utilized to treat moderate cases of plaque psoriasis.
Also, on June the 7th of 2016, the CPSC, Consumer Product Safety Commission, voted to ask the United States DOJ to pursue civil penalty against Dr. Reddy’s for failing to report risks regarding non-child resistant packing for five of their prescription medications. The commission’s vote resulted in a 4 to 1 recommendation to encourage the DOJ to take action. Dr. Reddy’s released a statement, which insisted they have no distributed the problematic drugs since June of 2012 and had since complied with the CPSA.
In other news, Envestnet Asset Management Inc. reduced their position in Dr. Reddy’s Laboratories by 92.3% during the first quarter of 2016. The fund sold 58,237 shares and now owns 4,831. During Friday’s trading window, Dr. Reddy’s stock fluctuated between $45.02 to $46.04. It finally closed at $45.10, which is -0.69 from its previous closing price. Over the past 52-weeks, the RDY stock has floated between $40.67 and $68.00.