Dr. Reddy's Laboratories Limited (RDY - Free Report) announced that it has divested its antibiotic manufacturing site and related assets in Bristol, TN to Abu Dhabi-based Neopharma, a subsidiary of UAE’s largest pharmaceutical manufacturer.
Per the agreement, Dr. Reddy’s disposed off all its issued and outstanding membership interests in Tennessee to Neopharma.
The motive for the sale is to streamline and optimize the cost structures and focusing on other important business concerns to drive growth.
The 390,000-square-foot manufacturing facility includes processing, packaging, development, printing and warehouse spaces along with a separate 24,000-square-foot plastics-processing facility in Bristol, TN. The plant provided packaging of amoxicillin-based products including semi-synthetic penicillin products.
The company also announced that it has terminated the license granted to Armis Biopharma, Inc. for its investigational antibacterial product, DFA-02, currently developed for the preventive treatment of surgical site infections. With the license rendered null and void, Dr Reddy’s regains rights to the candidate and is yet to take a call on whether to further develop it.
The company also announced the launch of imatinib mesylate tablets, USP, a therapeutic equivalent generic version of Novartis’ (NVS - Free Report) Gleevec (imatinib mesylate) tablets in the United States.
Talking about biosimilars, Dr. Reddy’s unveiled Hervycta (trastuzumab) in July, which is a biosimilar of Roche’s (RHHBY - Free Report) breast cancer drug Herceptin in India. Also, during the month, the company introduced Repatha (evolocumab) 140 mg/ml, the first and the only PCSK9 inhibitor available in India, approved by the Drug Controller General India.
Repatha is manufactured by Amgen (AMGN - Free Report) and distributed by Dr. Reddy’s in India.
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