Octoplus to be stand alone R&D unit says Dr Reddy's; no job cuts planned
Dr Reddy’s announced its €28m ($36.5m) bid earlier today, reporting that it already has firm sale commitments from shareholders that control over 50 per cent of Octoplus’ shares and that the Dutch company's board has recommended the deal to remaining stakeholders.
In a press statement, Dr Reddy’s CEO G V Prasad said: “As we globalize our R & D efforts, we are looking forward to build a research base in Leiden. The acquisition helps us ramp up our technology capabilities in drug delivery.”
The firm elaborated on this for in-Pharmatechnologist.com, telling us that: "The deal with OctoPlus will enable Dr. Reddy’s to extend its expertise in drug formulation and complex injectables.
"It will also enable Dr. Reddy’s to leverage existing skills and drive value in the complex generics space, in addition to expanding its reach in the fast growing Fee for Service business."
Dr Reddy's also set out how Octoplus would be integrated into the wider company, explaining that the firm would operate as an independent unit and that no redundancies are planned.
"OctoPlus will be positioned as a stand-alone centre for drug formulation and complex injectables within Dr. Reddy’s organization. Dr. Reddy's recognizes that OctoPlus employees play a pivotal role in the future of the Company and they will be treated accordingly. Current employee consultation structures will be maintained. No redundancies are to be expected following the envisaged transaction.
Dr Reddy's predicts that - assuming all regulatory conditions are met - the deal will close before the end of March next year.
Octoplus’ generates revenue from royalty and milestone payments associated with use of its proprietary delivery technologies and by performing fee for service formulation and manufacturing work.
