Dr Reddys Labs divests Louisiana subsidiary and facility
New Delhi: Dr Reddy's Laboratories Limited has announced the sale of its step-down wholly owned subsidiary, Dr Reddy's Laboratories Louisiana LLC (DRLL), along with its manufacturing facility in Shreveport, Louisiana, USA.
This subsidiary will cease to be a part of Dr. Reddy’s Laboratories Limited following the transaction, the Company stated in a BSE filing.
The sale agreement was signed on January 6, 2025, with Jaguar Labs Holdings, LLC, a Delaware-based company that is not related to Dr. Reddy’s promoter or group companies. The sale is expected to be completed by March 18, 2025.
As of the financial year ending March 31, 2024, DRLL contributed a turnover of $38.91 million (0.68% of consolidated income) and a net worth of $29.49 million (0.47% of consolidated net worth).
The facility is considered non-strategic with no future product pipeline, and any existing products are being transferred based on commercial viability.
Additionally, DRLL's net worth largely comprises inventories and inter-company receivables, which are anticipated to be utilized or realized before the transaction is finalized.
Medical Dialogues team had earlier reported that Dr Reddy's Laboratories SA, Switzerland, (''DRSA''), a wholly owned subsidiary of the Company, had incorporated a new wholly-owned subsidiary in Finland, named “Dr. Reddy's Finland Oy”.
Established in 1984, Dr. Reddy’s Laboratories Ltd. is a global pharmaceutical company headquartered in Hyderabad, India. The Company offers a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Its major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr Reddy's Labs major markets include – USA, India, Russia & CIS countries, China, Brazil and Europe.
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