October 1, 2018
Neopharma Inc, USA, a subsidiary of Abu Dhabi based pharmaceutical manufacturer, Neopharma, announced that it has entered into a definitive agreement to purchase antibiotic manufacturing facility and related assets in Bristol, Tennessee from Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY). Under the terms of the agreement, Dr. Reddy’s is selling all the issued and outstanding membership interests in Dr. Reddy’s Laboratories Tennessee, LLC and related assets.
The Bristol site has had a long and successful history with GSK and Dr. Reddy’s in manufacturing of blockbuster brands Augmentin® and Amoxil®. The sale will enable the facility to continue to provide oral penicillin-containing antibacterial products to meet the needs of patients in the United States.
The plant and associated facilities will focus on manufacturing and packaging amoxicillin-based products, which include semi-synthetic penicillin’s. The 390,000-square-foot facility is dedicated to manufacturing and packaging oral-solid dose penicillin and has separate spaces for processing, packaging, development, printing, and warehousing.
Neopharma continues momentum with Pharmaceutical Investments
The US facility acquisition follows similar facility buyouts in Japan and India and is a part of the global expansion drive for the UAE - based drug maker looking to establish itself as a global pharmaceutical manufacturer for high quality medications at affordable prices. Currently Neopharma manufactures and markets over 100 molecules in 50 countries. Neopharma currently, has 5 globally accredited pharmaceutical manufacturing facilities in 3 continents. Over the last few years Neopharma has made several major investment announcements that will position the company for future growth.
Dr. B.R. Shetty, Founder & Chairman, Neopharma remarked “We are delighted to have this acquisition from Dr. Reddy’s Laboratories. It’s a further affirmation of the Neopharma commitment to manufacture safe, efficacious and cost-effective medicines of consistent quality conforming to international standards. The partnership will enable us to transfer skills and knowledge locally.”
Suresh Kumar Nandiraju, Chief Operating Officer of Neopharma commented “This acquisition allows us to enter the United States penicillin-containing antibacterial market segment and dramatically increase generic drug business in US while providing opportunities to explore additional synergies with our other group companies. Being a market leader in antibiotic manufacturing and marketing, the acquisition also helps us leverage our expertise in beta lactam manufacturing and provide high quality, affordable products.”