Mumbai, Aug. 24: Just over a year after it acquired Betapharm Arzneimittel GmbH for 480 million euros, Dr Reddy’s Laboratories (DRL) has joined the race for the US-based Bradley Pharmaceuticals Inc which is up for sale.
The Hyderabad-based company had beaten off a number of suitors for Betapharm, which was the largest buyout of a pharmaceutical company by an Indian entity.
Bradley Pharma is a speciality pharmaceutical company headquartered in Fairfield, New Jersey. A sale of the company was announced to pursue certain strategic alternatives. Recently, Bradley said it had received preliminary non-binding bids.
Bradley, which retained Deutsche Bank Securities Inc as independent financial advisor, “has determined to continue to pursue a possible sale of the company,” it said earlier this month.
The company had then added that after obtaining these preliminary bids, a special committee had determined that it would continue to pursue a possible sale. “All bids are non-binding and subject to various conditions. No assurance can be given that any of these bidders or any other potential bidder will continue to express an interest in a transaction with the company or that any transaction will result from any bid or be consummated,” it said.
It is now learnt that DRL has expressed its interest in acquiring Bradley.
It however, could not be ascertained whether it had submitted a preliminary non-binding bid. A spokeswoman for DRL said the company had no comment to offer on the issue. It is learnt that the acquisition will be partly financed by the proceeds from ADR issue that Dr Reddy’s floated last year.
Bradley Pharma was founded in 1985 as a speciality pharmaceutical company and markets its products to a niche group of specialist physicians in the US and other markets.
Bradley Pharma, which posted sales of $144 million last year, specialises in dermatology, gastroenterology and respiratory medicines.
Industry analysts aver that DRL is keen to consolidate its presence in the US through acquisitions. The US has been one of the key markets for the research-oriented pharmaceutical company. During the first quarter of this year, North America contributed around 42 per cent of DRL’s revenues from generic dosages.
DRL’s acquisition of Betapharm was its second acquisition in Europe. It is the fastest-growing generic company over the past five years and ranks among Germany’s Top 10 pharmaceutical companies.