Dr Reddy's, JB Chem scrap Rs 137cr deal

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26 Aug, 2025 12:21

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Drug firm Dr Reddy's Laboratories today said its Rs 137.5 crore deal to acquire pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries has been mutually terminated by both the firms.

A source in the company, however, said the deal was called off as"both parties could not come to terms on the operationalisation"of their agreement.

In a statement Dr Reddy's Laboratories said:".The proposed business deal to acquire the pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries has been mutually terminated in the overall business interest of both parties".

In a filing to the BSE, JBCPL said both the parties have agreed with immediate effect not to pursue the proposed deal in their overall business interests.

"Accordingly, the proposed deal has been mutually called off,"JBCPL said.

Consequently, both JBCPL and Dr Reddy's Russian subsidiaries have also called off their proposed transaction in relation to sale of former's prescription products'inventory to latter, it added.

The two firms had inked a pact on July 22, 2011 with DRL agreeing to acquire JBCPL's prescription products business in Russia and CIS countries for Rs 137.5 crore

The transaction would have helped Dr Reddy's to acquire 20 key brands, including Jocet which could have given the Hyderabad-based firm an entry into USD 256 million cold and cough market in Russia, CIS markets.

The deal had also envisaged JBCPL supplying finished products for the acquired business.

Post the termination, JBCPL said it will continue to pursue its Russia-CS prescription products business aggressively.

Shares of Dr Reddy's Laboratories today closed at Rs 1,483.15 on the BSE, down 0.16% from the previous close.