November 23, 2010 / 4:22 PM / 8 years ago

UPDATE 1-Dr Reddy's buys Glaxo's U.S. penicillin business

*Dr Reddy’s takes over U.S. factory and two drug brands

* Glaxo keeps Augmentin and Amoxil rights outside U.S.

* Deal to close first half of next year, terms not disclosed

(Adds comment from companies on rationale for deal)

LONDON, Nov 23 (Reuters) - GlaxoSmithKline (GSK.L) is getting out of the oral penicillin business in the United States, selling a factory and two key brands to India’s Dr. Reddy’s Laboratories (REDY.BO).

Financial terms of the deal, which is expected to close in the first half of 2011, were not disclosed in a joint statement from the two drugmakers on Tuesday.

Dr. Reddy’s will take over the British company’s U.S. penicillin manufacturing site in Bristol, Tennessee, and get the rights for the penicillin medicines Augmentin and Amoxil.

Both drugs are now subject to generic competition and consequently generate only minor sales for Glaxo.

Glaxo said the disposal would allow it to focus on its newer portfolio of differentiated products, while the deal gives Dr. Reddy’s — a leading generics supplier — an entry into the U.S. penicillin-containing antibacterial market.

“This acquisition is in line with our strategy to significantly scale up our generics business in North America,” said Abhijit Mukherjee, Dr. Reddy’s head of global generics.

Glaxo will retain the existing rights for Augmentin and Amoxil outside the United States. (Reporting by Ben Hirschler; Editing by Greg Mahlich)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below