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Our Bureau

Hyderabad , July 6

After making two significant global acquisitions during last fiscal, Dr Reddy's Laboratories Ltd is likely to go in for many more global acquisitions in the comings years.

The Hyderabad-based drug major had acquired Roche's active pharmaceutical ingredients (API) business for $61-million and concluded the largest international acquisition by an Indian company till date by acquiring the German pharma company Betapharm for 483-million.

The hint on prospective acquisitions has come from the company's founder and Chairman, Dr K. Anji Reddy. In a communiqué to shareholders, he said, "Given the way in which your company's management is charged up and its success in integrating these international entities, something tells me that you may well be seeing more global acquisitions in the coming years."

New challenges

However, Dr Reddy said these initiatives also bring with them challenges that the company needs to address and surmount in the future.

Dr Reddy was elated over the way the company has re-engineered its R&D and built an even stronger pipeline for the future. Today, five of the company's seven key NCEs (new chemical entities) have advanced to clinical development. Further, there are a few in the pre-clinical that are showing considerable promise, he said.

In a sort of guidance for the future, the company said, Equity issue

In a bid to augment its long-term resources to strengthen financial position and also to meet its growth objectives, the company proposes to raise funds through issue of securities in the domestic and global markets.

The company proposes to finalise the detailed terms and conditions of the issue and time in consultation with the merchant bankers and lead managers.

The issue of securities would not be more than 2.3 crore equity shares of Rs 5 each. Depending on the then prevailing market conditions, Dr Reddy's company plans to determine the issue price of these securities, the company said in a notice to the shareholders.

More Stories on : Mergers & Acquisitions | Pharmaceuticals | Dr. Reddy's Laboratories Ltd

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