Dr. Reddy's Laboratories Limited has acquired JB Chemicals And Pharmaceutical Limited's Russia-CIS prescription products business, for $34.85 Mn (Rs.155 Cr).

The deal involves acquisition of 20 brands, including 'Metrogyl' and 'Jocet', which gives Dr.Reddy entry in the cold and cough market in Russia and CIS markets. It has also entered into a supply agreement with JB Chemicals for the continued manufacturing and supply of these products associated with the acquired brands.

Bank of America Merrill Lynch acted as the financial advisor to JB Chemicals.

Transaction Reference: Times Of India

This year in April, JB Chemicals sold its 'Doktor Mom' brand to Johnson & Johnson. OTC brand Doktor Mom includes a syrup, a rub and lozenges with flavours.

Russia and the CIS countries contributed about 45% to JB Chemical's revenue.

Mumbai-based JB Chemicals manufactures wide range of speciality medicines for domestic and international markets.

Some of it's other brands include 'Rantac' (for hyper-acidity), 'Nicardia Retard' (cardiovascular therapeutic segment), 'OF' (antibiotic), 'Cilacar' (antihypertensive) and 'Dicloran'. It has global presence with with operations in over 50 countries across the world.

Established in 1984, Hyderabad-based Dr. Reddy’s Laboratories is an integrated pharma firm. Its products are marketed in India, Europe and Russia.

Dr. Reddy's entered the Russia market in 1992 and Omez, Nise, Ketorol & Ciprolet are its top four brands in the Russian market.

Recently, Lupin Limited is also looking to sell its India formulations business. Last month, Lupin acquired the worldwide rights for Australian brand Goanna from Aspen Pharmacare Holdings, through its Australian subsidiary Generic Health Pty Ltd.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
25/07/11	JB Chemicals - Prescription Biz - Dr. Reddy's Lab	M&A	Dr. Reddy's Laboratories Limited	34.85

 

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  Profiles

Company
Name	Promoters	Office	Competitor	Website
Dr. Reddy's Laboratories Limited	Kallam Anji Reddy	8-2-337 Road No 3, Banjara Hills	Strides Arcolab Limited Parenteral Drugs India Limited Pfizer Limited Ankur Drugs & Pharma Limited Ortin Laboratories Limited	www.drreddys.com
JB Chemicals And Pharmaceutical Limited	Jyotindra B Mody Dinesh B Mody Shirish B Mody Bharat P Mehta Pranabh Mody Rajen D Shah	Neelam Centre, B Wing, 4th Floor, Hind Cycle Road, Worli		www.jbcpl.com

  Advisor

Bank Of America Merrill Lynch