Hyderabad-based drug drug firm Dr Reddy?s Laboratories on Monday said its R137.5 crore deal to acquire the pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries, has been has been mutually terminated by both the firms. It is said that the two companies could not agree on the operational terms of the agreement.
Shares of Dr Reddy?s Laboratories closed at R1,483.15 on the Bombay Stock Exchange on Monday, down 0.16% from the previous close.
In a statement Dr Reddy?s Laboratories said, ?The proposed business deal to acquire the pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries has been mutually terminated in the overall business interest of both parties.? The two firms had entered into an agreement on July 22 this year, with Dr Reddy?s Laboratories agreeing to acquire JBCPL?s prescription products business in Russia and CIS countries for R137.5 crore.
The transaction would have helped Dr Reddy?s to acquire 20 key brands, including Jocet which could have given the Hyderabad-based firm an entry into the estimated $250 million cold and cough market in Russia, CIS markets.
The deal had also envisaged JBCPL supplying finished products for the acquired business. Post the termination, JBCPL said it will continue to pursue its Russia-CIS prescription products business aggressively.
Incidentally, Dr. Reddy?s is the largest Indian pharmaceutical company in Russia and also the fastest growing international branded generic company by volume.
The company entered the Russia market in 1992 and consolidated its position during the turbulent currency crisis of the late 1990s. Omez, Nise, Ketorol & Ciprolet are its top four brands in the Russian market. Its financial year 2011 revenues from Russia and other CIS markets stood at $244 million, representing a growth of 19%.