Dr Reddy's Laboratories (DRL) sold its Goa facility to Watson Pharmaceuticals Inc, US for an undisclosed amount recently.
The company's decision to set up finished dosages facility at Baddi in Himachal Pradesh - lured by the attractive incentives being offered by the State Government, is found to be the reason behind selling off Goa plant.
"The advantages and benefits of Baddi facility outweigh those offered by Goa. That's why we have decided to sell the Goa unit," G.V. Prasad, Dr Reddy's vice-chairman and chief executive officer, said. The company had set up formulation facility at Verna, Goa in 2003-'04 with 100 per cent income tax exemption for the first five years, and 30 per cent for five years.
Watson is a leading specialty pharmaceutical company that develops, manufactures, markets and distributes branded and generic pharmaceutical products. Founded in 1984, Watson was incorporated in 1985 and began operations as a manufacturer and marketer of generic pharmaceuticals
Recently, DRL entered into a definitive agreement to acquire Roche's API business at the state-of-the-art manufacturing site in Cuernavaca, Mexico including all employees and business supply contracts. The total investment outlay is about USD 59 million including working capital. This business involves the manufacture and sale of APIs including intermediates to Roche and other innovator companies.