Pharma major Dr. Reddy's Laboratories Ltd on Monday announced the sale of its antibiotic manufacturing facility and related assets in Tennessee, US, for an undisclosed sum.
The Hyderabad-headquartered company said it sold the facility and related assets to Neopharma Inc., a wholly owned subsidiary of the United Arab Emirates' (UAE) largest pharmaceutical manufacturer headquartered in Abu Dhabi.
According to a statement by Dr Reddy's, it sold all the issued and outstanding membership interests in Dr. Reddy's Laboratories Tennessee, LLC and certain related assets.
"This sale is in line with our stated priority to streamline and optimize our global cost structures and help us focus on other business priorities to drive growth," said Erez Israeli, Chief Operating Officer for Dr. Reddy's.
Suresh Nandiraju, Chief Operating Officer of Neopharma Inc., said that this acquisition is synergetic and will strengthen their product portfolio for driving long-term, sustainable growth by leveraging their global presence.
The plant and associated facilities focus on manufacturing or packaging amoxicillin-based products, which include a semi-synthetic penicillin.
The 390,000-square-foot facility is dedicated to secondary oral-solid dose penicillin manufacturing/packaging and includes processing, packaging, development, printing and warehouse spaces.
A separate 24,000-square-foot plastics-processing facility in Bristol, Tennessee, is also included in the transaction, it added