Dr Reddy Betapharm
The Betapharm Acquisition: DRL 's Inorganic Growth Strategy in Europe
DRL GAINS A FOOTHOLD IN EUROPE
On February 15, 2006, Dr. Reddy 's Laboratories Limited (DRL), a leading Indian pharmaceutical company, acquired the fourth-largest generic pharmaceutical company in Germany, betapharm Arzneimittel GmbH (betapharm) from the 3i Group PLC (3i) for US$570 million (480 million). The deal also included the beta institute for socio medical research GmbH ' (beta Institute), a non-profit research institute founded and funded by betapharm to conduct research on issues related to social aspects of medicine and health management. The acquisition was hailed as the biggest overseas acquisition made by an Indian pharmaceutical company.
The synergies from the acquisition were expected to benefit both DRL and betapharm. Through this acquisition DRL could get immediate access to the German generic market, the second-largest generic market in the world after the US. Germany also accounted for 66 percent of the generic market in Europe. The acquisition was expected to help DRL gain a strategic presence in the European market as the generic drug market in Europe was expected to show strong growth
Betapharm was expected to benefit from the acquisition as it would be able to add more products to its portfolio and grow at a much faster rate in Germany. Besides, the acquisition would help it to utilize DRL 's global product development and marketing infrastructure to expand its presence in the European market in the long run. Though DRL was not the highest bidder, it clinched the deal largely due to the perceived synergies between the two companies. DRL 's strong commitment to corporate social responsibility (CSR) initiatives too helped swing the deal in its favour as betapharm identified with such initiatives through the activities conducted by beta Institute.
However, some analysts were of the opinion that DRL had paid too much to 3i for the acquisition as the value of
DRL GAINS A FOOTHOLD IN EUROPE
On February 15, 2006, Dr. Reddy 's Laboratories Limited (DRL), a leading Indian pharmaceutical company, acquired the fourth-largest generic pharmaceutical company in Germany, betapharm Arzneimittel GmbH (betapharm) from the 3i Group PLC (3i) for US$570 million (480 million). The deal also included the beta institute for socio medical research GmbH ' (beta Institute), a non-profit research institute founded and funded by betapharm to conduct research on issues related to social aspects of medicine and health management. The acquisition was hailed as the biggest overseas acquisition made by an Indian pharmaceutical company.
The synergies from the acquisition were expected to benefit both DRL and betapharm. Through this acquisition DRL could get immediate access to the German generic market, the second-largest generic market in the world after the US. Germany also accounted for 66 percent of the generic market in Europe. The acquisition was expected to help DRL gain a strategic presence in the European market as the generic drug market in Europe was expected to show strong growth
Betapharm was expected to benefit from the acquisition as it would be able to add more products to its portfolio and grow at a much faster rate in Germany. Besides, the acquisition would help it to utilize DRL 's global product development and marketing infrastructure to expand its presence in the European market in the long run. Though DRL was not the highest bidder, it clinched the deal largely due to the perceived synergies between the two companies. DRL 's strong commitment to corporate social responsibility (CSR) initiatives too helped swing the deal in its favour as betapharm identified with such initiatives through the activities conducted by beta Institute.
However, some analysts were of the opinion that DRL had paid too much to 3i for the acquisition as the value of
References:  http://www.drreddys.com/#  http://messageboard.moneycontrol.com/mccode/news/article/news_article.php?autono=202591  http://www.cfo.com/article.cfm/10519026/1/c_2984293?f=home_europe_featured  http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR249.htm  http://www.financialexpress.com/old/fe_full_story.php?content_id=117836  www.Nseindia.com