Business News
BASF sells its Shreveport site and related contract manufacturing business to Dr. Reddys Laboratories
Wednesday 30. April 2008 - BASF announced today that it has signed a definitive agreement to sell its manufacturing facility in Shreveport, Louisiana and the related contract manufacturing business for finished pharmaceuticals to Dr. Reddys Laboratories, an international pharmaceutical company headquartered in Hyderabad, Andhra Pradesh, India. Both parties agreed not to disclose financial details of the transaction, which is expected to close today.
As part of the agreement, approximately 150 employees will transfer from BASF to Dr. Reddys Laboratories. The 42-acre Shreveport facility currently manufactures and packages prescription and over-the-counter (OTC) pharmaceutical products, liquids, tablets and creams for the North American market. BASF is divesting the site and related business in order to concentrate on core businesses in its Care Chemicals division, which include custom synthesis services, excipients and active ingredients for the pharmaceuticals industry.
“BASFs contract manufacturing activity for finished pharmaceuticals is limited to North America and not linked to the technological growth areas of the companys Pharma Ingredients and Services business. We want to continue to grow our excipients and custom synthesis operations to better serve the pharmaceutical industry in the future,” said Martin Widmann, Head of BASFs Pharma Ingredients and Services global business unit. “We assessed a variety of strategic options, but ultimately concluded that a divestiture is the best scenario not only for BASF but also for the future of the Shreveport site and its employees.”
“We are excited about the acquisition of BASFs finished dosage manufacturing facility in the United States as it enables us to strengthen our supply chain for North America, provides a strong platform for pursuing additional growth opportunities and also provides access to strong customer relationships with branded and generic companies,” said Satish Reddy, Managing Director & Chief Operating Officer, Dr. Reddys Laboratories