Indian drug maker Dr Reddy’s has made its first overseas acquisition in a deal to buy two small British generic drug companies for £9m ($12.7m).
Dr Reddy’s, India’s only US-listed pharmaceutical company, said the acquisition of BMS Laboratories and its subsidiary Meridian Healthcare would be completed by early April.
Chief executive G V Prasad said the acquisition would “jumpstart” the company’s generics business in the UK.
The Hyderabad-based drug maker said the BMS group made solid and liquid medication and packaging.
In a statement it said Meridian currently sold 30 generic products and planned to get licences for another 70.
The BMS group made a profit of £1.6m on sales of £8million in 2001.
Dr Reddy’s main export market for its generic drugs is the US.
It has sold $60m worth of a generic copy of Eli Lilly’s anti-depressant Prozac in the US.
Other Indian drug makers like Ranbaxy Laboratories, Wockhardt and Sun Pharmaceutical Industries have already made acquisitions in the US and Europe.