Dr Reddy's Laboratories Ltd Monday said it entered into a definitive agreement for the sale of its API Active Pharmaceutical Ingredients (API) manufacturing business unit located in Jeedimetla, here, to Therapiva Private Ltd, an emerging generics pharmaceutical company.

Therapivais a joint venture between Omnicare Drugs India Private Limited, a wholly owned subsidiary of Neopharma LLC, Abu Dhabi and Laxai Life Sciences Private Ltd.

According to a press release, the sale is being done as a going concern and includes all related fixed assets (land and building), current assets, current liabilities, and its employees.

The divestiture of our API manufacturing business unit is a step towards streamlining its manufacturing operations and optimising the cost structures, Sanjay Sharma, Executive Vice President and Head, Global Manufacturing Operations, Dr Reddys said.

"We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset," he said.

"This acquisition represents a unique opportunity to further strengthen Therapiva's position as a premier supplier of APls.

There is a strong cultural fit between our companies and we are excited to welcome the employees of Dr Reddy's to accelerate our ambitious growth plans," CEO of Therapiva and Laxai Life Sciences, Vamsi Maddipatla said.

"We are very excited with this acquisition which will augment Neopharma's vertical integration advantage and provide us with a high quality manufacturing base in India.

This is a key milestone in our acquisition strategy over the next few years to increase Neopharma's presence in the global generics space," Chairman of Neopharma LLC, Abu Dhabi, BR Shetty said.

Dr Reddy's recently closed the sale of its antibiotic manufacturing facility and related assets in Bristol, Tennessee to Neopharma Inc.

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