Betapharm buy catapults Dr Reddy's into the generic drugs big league

The acquisition of German generic drug maker Betapharm Arzneimittle for 25.0 billion rupees ($555.0 million) in an all-cash deal, has catapulted Indian drug major Dr Reddy's Laboratories (DRL) into the top five companies in the European Union generics market, and in the top three in India (Marketletter March 13). The buy followed two years of negotiations by Kallam Anji Reddy, founder and chairman of DRL.

The deal is claimed to be the biggest overseas acquisition by an Indian pharmaceutical company, the largest European buy-out and possibly India's first on-line overseas takeover deal. Ranbaxy, India's number one pharmaceutical company, was also very interested in buying the German company (Marketletters passim).

DRL's executive vice president, VS Vasudevan, said in an interview with local correspondent Amitava Mukherjee: "we put up a structured method of completing the process rather than being tentative and holding endless negotiations, something most Indian firms are known for, especially in large deals. On February 16, executives of the two companies, comfortably ensconced in their offices in Munich and Hyderabad, signed the 30-page share purchase agreement over the Internet."