DR REDDY'S Laboratories and Betapharm Arzneimittel GmbH

On March 6, 2006, Hyderabad based DR REDDY'S Laboratories completed the acquisition of 100% equity of Betapharm Arzneimittel GmbH for euro 572 million (approximately Rs 2,574 crore) from 3i Group in one of the largest overseas acquisitions by an Indian Pharmaceutical major.Betapharm Arzneimittel GmbH is the fourth largest generic pharmaceuticals company based in Germany holds a 3.5% market share of the 27 billion German pharmaceutical market, and is the fastest growing generic pharmaceutical company amongst the top 10 for the last 5 years. It markets high-quality generic drugs with focus on long-term therapy products with high prescription rates.The acquisition was made to increase Dr. Reddy’s presence by leveraging its global product development and marketing infrastructure to build a significant generics business in Europe and to supplement their initiative to becoming a mid-sized global pharmaceutical company.The deal was funded using a combination of internal cash reserves and committed credit facilities.The company had earlier acquired the UK-based BMS Laboratories, in 2002 and its wholly-owned subsidiary, Aurigene Discovery Technologies, for around $12 million. In November 2005, Dr Reddy's acquired Roche's APIs business, in Cuernavaca, Mexico, in a $59-million deal.