Dr Reddys buys Group Pharma brands

By Praveen Chandran | 26 Dec 2001

1
Mumbai: Dr Reddy’s Laboratories has acquired the Mumbai-based Group Pharmaceutical’s entire range of six dental brands in an all-cash deal worth around Rs 30 crore. The acquisition takes Dr Reddy’s to the No 1 position in the dental segment as per CMARC’s prescription audit.

The acquired brands include the Stolin and Senquel ranges and Clohex mouthwash. As part of the deal, Dr Reddy’s has also acquired Group Pharma’s marketing rights to Fittydent denture adhesive and denture-cleaning system, currently under license from Fittydent International, Austria. The other brands to fall into Dr Reddy’s basket through this deal are S-flo, a fluoride mouth-rinse, the Dologel range for treatment of oral tissue inflammation and Metrohex gel, which treats severe gum diseases.

The Stolin range includes Stolin-R, the only FDA-approved paste for regular usage to maintain total oral hygiene, and Stolin Gum Astringent, which has established itself as the original means to control gum diseases. The Senquel range has Senquel-F, one of the top desensitising brands in the market for highly sensitive teeth, and Senquel AD, a tooth desensitiser oral rinse. Clohex is currently the No 2 brand in the mouthwash market. The six brands add a total of 19 stock keeping units to Dr Reddy’s dental basket.

While Dr Reddy’s has acquired the proprietary rights to the six brands, Group Pharma will continue to manufacture the products for Dr Reddy’s. The MAPE Advisory Group, a merger and acquisition-consulting firm, was the advisor for this deal.

Group Pharma owns a modern manufacturing unit in Bangalore, set in accordance with the USFDA standard. Dr Reddy’s is expected to take over all the brands of the Rs 16-crore dental-care division, leaving the group with its other products like nutritional, psychotropic drugs and cough-cold medicines. The company is paying roughly 1.7 to 1.8 times the annual sales of the dental brand for this acquisition.

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