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Rediff News  All News  » Business » Dr Reddy's to acquire OctoPlus for euro 27.4 million

Dr Reddy's to acquire OctoPlus for euro 27.4 million

October 22, 2012 11:54 IST

Drug maker Dr Reddy's Laboratories on Monday said it has decided to acquire Netherlands-based OctoPlus NV, a speciality pharmaceutical company, for about 27.4 million euros (about Rs 1.93 billion).

In a joint statement with OctoPlus, DRL said both the companies have reached conditional agreement in connection with an intended public offer by DRL or a wholly owned subsidiary of DRL, for all issued and outstanding ordinary shares in the capital of OctoPlus at an offer price of 0.52 euro in cash for each OctoPlus share.

Chief executive officer and vice chairman of Dr Reddy's Lab G V Prasad said: "We are happy to have an R&D base in the Leiden area (The Netherlands) and the acquisition gives us the ability to strengthen our technological capabilities in the areas of drug delivery."

The offer values 100 per cent of the issued and outstanding ordinary shares of OctoPlus at 27.4 million euros, the statement added.

CEO of OctoPlus Jan Egberts said, "We are proud of the confidence Dr Reddy's has shown in our organisation. It reflects the success of the major operational and organisational improvements we have implemented over the past few years."

Shares of DRL were trading at Rs 1,710 apiece on the BSE in the early trade.

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