Mumbai, Nov 24 (IANS) Pharmaceutical major Dr Reddy's Laboratories Wednesday said it has entered into an agreement with GlaxoSmithKline (GSK) for acquiring its oral penicillin facility.
According to a regulatory filing by the company, GSK will transfer ownership of its oral penicillin manufacturing site in Bristol, Tennessee.
The company will also get the rights for the augmentin and amoxil brands in the American markets, while GSK will retain the existing rights for these brands outside the US.
'It allows us to enter the US penicillin-containing antibacterial market segment and serve the needs of our customers and patients through manufacturing capabilities that did not previously exist within Dr Reddy's,' said Dr Reddy's Laboratories' global generics business president Abhijit Mukherjee.
The transaction is expected to close within the first half of the next calendar year. The companies did not provide any financial detail of the deal.
'The acquisition is in line with our strategy to significantly scale up our generics business in North America,' Mukherjee said.