Dr Reddy’s Laboratories on Monday announced the closure of the sale of its antibiotic manufacturing facility and related assets in Bristol, Tennessee to Neopharma Inc., a subsidiary of the UAE’s largest pharmaceutical manufacturer headquartered in Abu Dhabi, for an undisclosed sum.
This is in line with DRL’s priority to streamline and optimise our global cost structures and help us focus on other business priorities to drive growth.
The plant and associated facilities focus on manufacturing or packaging amoxicillin-based products, which include a semi-synthetic penicillin. The 3,90,000 sq.ft. facility is dedicated to secondary oral-solid dose penicillin manufacturing/packaging, and includes processing, packaging, development, printing and warehouse spaces. A separate 24,000 sq.ft. plastics-processing facility in Bristol also forms part of the transaction. In another announcement on Monday, Dr. Reddy’s said it had terminated the licence granted to Armis Biopharma (formerly known as CHD Bioscience) for its investigational antibacterial product, DFA-02, for the prophylaxis of surgical site infections. As a result, Dr. Reddy’s has regained worldwide rights to DFA-02 and is evaluating its options to take the programme forward.