Glaxo seeking stake in Dr Reddy's: report
18 September 2009
GlaxoSmithKline is in talks to buy a 5-per cent stake in Indian drug manufacturer Dr Reddy's Laboratories in a deal likely to be valued at $150 million (Rs722 crore), according to unconfirmed reports that sent Dr Reddy's shares soaring on the exchanges today.
Areport in The Economic Times did not quote any sources, and was not confirmed by either company. Nonetheless, it has been widely picked up by the media.
A transaction could be clinched in two months if talks stay on track, the newspaper said, adding that UK-based Glaxo could get the first right of refusal if the founders of the Indian firm decide to sell their stake in the future.
The two companies already have close ties. In June, the two firms signed an alliance that gave Glaxo access to Dr Reddy's portfolio and future pipeline of more than 100 branded pharmaceuticals.
Glaxo wants to purchase the stake in Dr Reddy's to strengthen its association with the Indian generic drugmaker, the report said.