Dr. Reddy's Laboratories sells API unit

The pharma company sold its Hyderabad API manufacturing plant to Therapiva Private as a going concern. The stock was buzzing in early morning trade on Monday and was up by more than 3 per cent.

The company signed a definitive agreement to sell-off its business unit situated in Jeedimetla, Hyderabad, to Therapiva. The deal is by way of a slump sale along with all fixed and current assets, current liabilities and employees. This move is in-line with Dr. Reddy's strategy to streamline operations to optimize cost.

Therapiva Private Limited is a joint venture between Omnicare Drugs India Private Limited and Laxai Life Sciences Private Ltd. Omnicare is a 100 per cent subsidiary of Neopharma LLC, Abu Dhabi.

Earlier, Dr. Reddy's had announced the launch of Colesevelam HCI Tablets, USP, in the US market. The drug is a generic version of Welchol, which is a polymeric, lipid-lowering and glucose-lowering agent prescribed to patients with Type 2 diabetes mellitus.

The company's Q2FY19 results are scheduled on October 26, 2018.

Meanwhile, at 9:45 hours, the stock of Dr. Reddy's Lab was quoting Rs. 2,528.05 per share, up by Rs. 77.70 or 3.17 per cent on Monday.