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GlaxoSmithKline reported to be considering 5-percent stake in Dr. Reddy's
 
 
  by Mark Todoruk
September 18, 2009 firstword.com
 
According to people familiar with the matter, GlaxoSmithKline is in discussions to purchase a 5-percent stake in Dr. Reddy's in a transaction that could be worth around $150 million, The Economic Times reported. Sources speculated that if talks remain on course, a deal could be reached within two months.
 
The news follows an announcement in June that the two companies entered into a collaboration under which GlaxoSmithKline markets certain Dr. Reddy's products outside of India, and which gives GlaxoSmithKline access to the Indian drugmaker's portfolio and future pipeline of branded drugs.
 
In response to the latest report, Royal Bank of Scotland analyst Michael Leacock stated: "I don't believe [GlaxoSmithKline is] going to make any material purchase of shares but if they want to take a small stake to cement the relationship and drive the alliance then that makes sense."
 
Reference Articles
 
Dr. Reddy's climbs to record on Glaxo purchase report - (Bloomberg)
 
Dr Reddy's in talks with Glaxo for stake sale - (The Economic Times)
 
Dr Reddy's stocks surge on stake sale to GSK report - (livemint.com)
 
 
 
 
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