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HYDERABAD, March 12

IN a move that enables a smooth entry into the UK generics market, Dr Reddy's Laboratories Ltd, the Hyderabad-based pharma major, is set to make its first overseas acquisition next month by taking over two UK-based privately-held pharma companies.

The company announced here on Tuesday that it had signed a definitive agreement to acquire 100 per cent of BMS Laboratories Ltd and Meridian Healthcare (UK) Ltd, a wholly-owned subsidiary of BMS Laboratories.

The transaction, valued at £9.05 million, was expected to be completed by early April, the company said in a press release.

The BMS group is primarily into the business of manufacturing and marketing of generic pharmaceutical products in the UK. The group registered a combined turnover of around £8 million and net profit of £1.6 million during the last financial year. Both BMS and Meridian have fully-integrated manufacturing facilities for oral solids, liquids and packaging located in London and Beverley, respectively. Meridian currently markets over 30 generic products through full and short-line wholesalers and has another 70 licences in the pipeline.

According to the Dr Reddy's Chief Executive Officer, Mr G.V. Prasad: "The acquisition is a key step in our efforts to globalise our business. It gives us entry into the UK generics market through the BMS group's established product basket and strong marketing network. We expect to jumpstart our generics business in UK."

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