InvestorQ : Will the acquisition deal between Reddy Labs and Wockhardt add value to both the companies?
Dhwani Mehta made post

Will the acquisition deal between Reddy Labs and Wockhardt add value to both the companies?

Answer
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Khushi Patel answered.
4 months ago


Reddy Laboratories has completed the acquisition of the branded generics portfolio of Wockhardt across India, Nepal, Sri Lanka, Bhutan and Maldives. The branded generics portfolio of Wockhardt comprises 62 brands across respiratory, dermatology and neurology. The acquisition was originally done for an upfront consideration of Rs.1850 crore but was later negotiated and scaled down to Rs.1483 crore in view of the COVID-19 pandemic. For Reddy Labs this allows them to reduce their dependence on the US markets and focus more on India, which is one of the key focus areas for Reddy Labs. Most pharma companies have been hard pressed to reduce their dependence on the US.