Dr. Reddys Laboratories Ltd.

Dr. Reddy’s Laboratories has entered into a definitive agreement with Teva Pharmaceutical Industries (Teva) and an affiliate of Allergan plc to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for $350 million in cash at closing. The acquired portfolio consists of products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan’s generics business. The acquisition of these ANDAs is also contingent on the closing of the Teva/Allergan generics transaction and approval by the US Federal Trade Commission of Dr. Reddy’s as a buyer.

The portfolio being acquired is a mix of filed ANDAs pending approval and an approved ANDA, and comprised of complex generic products across diverse dosage forms. According to IMS Health, the combined sales of the branded versions of the products in the US are approximately $3.5 billion MAT for the most recent twelve months ending in April 2016.

Dr. Reddy’s Laboratories is acquiring the portfolio on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities.