India-based pharma firm drugmaker Dr Reddy’s Laboratories Ltd has reached an agreement to acquire eight generic brands of drugs from Teva Pharmaceutical Industries and Allergan Plc for $350m in cash to bolster its U.S. business.
The deal is part of Teva Pharma’s plan to divest certain brands of generics in the U.S. market to gain regulatory approval for its $40.5bn merger with Allergan.
The deal consists of generic drugs awaiting U.S. approval, and some that are already on the market, including “complex generic products across diverse dosage forms”.
The branded versions of drugs under the deal had U.S. sales of about $3.5bn in the year to April 2016 (Source: IMS Health).
Dr Reddy’s plans to finance the deal with cash on hand and available borrowings under existing credit facilities.