Monday’s announcement will see Dr. Reddy’s API facility in Hyderabad sold to Therapiva Pvt. News that Dr Reddy’s Laboratories Ltd is selling one of its API (active pharmaceutical ingredient) units sent its shares up by 4.5% on Monday. In a win-win arrangement, the acquirer gets a viable API business, while Dr Reddy’s could ink a long-term sourcing arrangement to ensure raw material availability. In the June quarter, Dr Reddy’s had said that the improvement in profitability was partly due to costs being kept in check. More clarity on the impact on profitability should be forthcoming at Dr Reddy’s post-results conference call later this month.

Source: Mint October 16, 2018 03:11 UTC