According to the multinational company, it sold the Tennessee facility as step towards its goal of optimizing global cost structures. Neopharma, who purchased the facility, is a subsidiary of Neopharma LLC, the United Arab Emirates’ largest pharmaceutical manufacturer.
The 390,000-square-foot facility focused on manufacturing or packaging amoxicillin-based products and semi-synthetic penicillin, and includes processing, packaging, development, printing, and warehouse spaces. A separate 24,000-square-foot plastics processing facility in Bristol is also included in the transaction.
A spokesperson from Dr. Reddy’s told us, “In the US, the sale represents Dr. Reddy’s entire antibiotics (penicillin) portfolio.”
Despite the acquisition, manufacturing and sales will briefly continue, “Dr. Reddy’s had established a transition period, considering the upcoming cold/cough season, in which customers can continue to purchase product through for a period of time,” said the spokesperson.
Neopharma stated that this acquisition will strengthen its product portfolio by growing its global presence.
According to Dr. Reddy’s, “By selling the Bristol facility, it will help us focus on other business priorities to drive growth.”