Dr. Reddy’s Laboratories (DRL) emphasizes the company’s commitment to the Indian market by acquiring the majority of Wockhardt’s domestic formulation business. The deal will include transfer of 62 products from the Generic Business Giant Wockhardt at a price of INR 18.5 Billion. Therefore, to reduce the load of debt and to reorganize the business, Wockhardt had persuaded this idea of the stake sale.
CEO of Dr. Reddy’s, Mr. GV Prasad quoted that the acquisition in the field of respiratory, pain management and anti-infectives, will metastasize the horizon of the company in the Indian market. Moreover, Wockhardt’s Chairman Mr. Habil Khorakiwala commented that the company is strategically planning to retract its business from acute therapeutic areas to the more chronic sectors. Fortunately, this deal will provide adequate liquidity to chemical markets like Acetone, Phenol and Acetic Acid to flourish in the country, as they serve as a major raw material for the production process of a commendable number of drugs.