Dr Reddy's, JB Chemicals call off Russia deal

Dr Reddy's Laboratories said on Monday that a proposed deal to acquire the drug prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries has been mutually called off "in the overall business interest of both parties".

Dr Reddy's, the Hyderabad-based company, did not elaborate on the reasons for terminating the proposed acquisition, in its statement to the National Stock Exchange.

[caption id="attachment_92826" align="alignleft" width="380" caption="Dr Reddy's, the Hyderabad-based company, did not elaborate on the reasons for terminating the proposed acquisition. Reuters"][/caption]

JB Chemicals said in an exchange filing that it "will continue to pursue its Russia-CIS prescription products business aggressively".

In July, Dr Reddy's had agreed to buy the business for about $34.9 million, which involved acquiring 20 brands from JB Chemicals.

In May, Johnson & Johnson agreed to buy several over-the-counter medicines sold in Russia from JB Chemicals for about $260 million.

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Shares in Dr. Reddy's, valued at $5.1 billion, closed 0.11 percent down ahead of the announcement, while JB Chemicals, valued at $128.3 million, closed down 5.39 percent in a weak Mumbai market.

Reuters