Dr Reddy's Laboratories (DRL) sold its Goa facility to Watson Pharmaceuticals Inc, US for an undisclosed amount. This news immediately pushed DRL scrip down to Rs. 935 on BSE from previous close of Rs. 930. 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 has already set up its base in China and now entering India.

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

Watson markets its products through three core areas: specialty products, nephrology and generic products. Approximately 75 per cent of Watson revenue is comprised of generic product sales and 25 per cent from brand product sales. Watson has been appointed as the exclusive distributor of authorised generic oxycodone HCl controlled-release tablets C-II in 10, 20, 40 and 80 mg dosage strengths under a supply agreement with Purdue Pharma L.P.

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.