Dr Reddy’s Stock Rises Over 2% On Swiss Firm Acquisition
Dr Reddy's has been investing in the areas of access to novel molecules, consumer healthcare and digital therapeutics as additional levers for business growth
The stocks of pharmaceutical firm Dr Reddy rose over 2 per cent in the Thursday trading session after the firm acquired a Swiss firm through its wholly owned subsidiary.
Dr Reddy stocks traded at Rs 6.200 with 2.14 per cent gain in the afternoon session on the National Stock Exchange (NSE).
“We wish to inform that the wholly-owned subsidiary, Dr Reddy’s Laboratories SA, Switzerland has entered into a definitive agreement with Haleon plc and its associate companies to acquire Nicotinell and related brands by way of acquisition of all of the quotas of Northstar Switzerland SARL (Northstar Switzerland) incorporated in Switzerland owned by the Haleon Group with step-down subsidiaries in the United Kingdom and Sweden,” stated Dr Reddy in an exchange filing.
The intellectual property, business contracts, dossiers and other assets related to the portfolio being acquired will reside in Northstar Switzerland and/or its fully owned step-down subsidiaries North Star OpCo and North Star Sweden AB will be incorporated in England and Wales and Sweden, respectively.
The total revenue of the portfolio being acquired had net revenues of approximately GBP 217 million in current year 2023, whereas Northstar Switzerland is newly incorporated, therefore, the turnover of this company is nil.
Apart from growing its core business of generic pharmaceuticals, Dr Reddy's has been investing in the areas of access to novel molecules, consumer healthcare and digital therapeutics as additional levers for business growth.
The transaction is expected to close by early Q4 of calendar year 2024.
Dr Reddy's Laboratories SA will pay an upfront cash consideration of GBP 458 million and additional performance-based contingent cash payments of up to GBP 42 million in CY 2025 and CY 2026.
