Buy mode

Mumbai, April 30: Indian drug firms have gone on a buying spree abroad.

While Dr Reddy’s Laboratories Ltd (DRL) is acquiring German chemical company BASF’s pharmaceutical contract manufacturing business in the US, Strides Arcolab will raise its stake in Australian firm Genepharm Australasia Ltd to 55 per cent.

Refusing to disclose the amount it will pay for the acquisition, Hyderabad-based DRL said the transaction was subject to customary closing conditions and expected it to be completed within the first quarter of 2008-09.

The company will fund the transaction by using its internal cash reserves or other committed credit facilities. DRL expects that the acquisition will enable it to strengthen its supply chain in North America.

BASF’s pharmaceutical contract manufacturing business is located in Shreveport, Louisiana.

Bangalore-based Strides will raise its stake in Genepharm over a period of time to 55 per cent.

Strides will transfer its Australian and Asian businesses to Genepharm for Australian $61 million and in return will acquire an equity stake in the latter. Strides had said the Australian and Asian businesses were valued at Australian $65 million earlier this year.

Genepharm markets, sells and distributes a range of pharmaceutical products and services to pharmacies, hospitals, medical centres and wholesalers.