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Dr. Reddy's to Buy Drug Firm

The Indian company buys Germany's Betapharm Group.

Dr. Reddy's Laboratories

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, the Indian drug manufacturer, said it signed an agreement to acquire Betapharm Group, the fourth-largest generic pharmaceuticals company in Germany.

The deal is valued at 480 million euros. Dr. Reddy's will fund the all-cash acquisition using a combination of internal cash reserves and credit facilities.

The transaction should close in the first week of March. Betapharm had 2005 revenue of 164 million euros, Dr. Reddy's said.

"The combination of these two companies will enable Betapharm to continue to expand its growth trajectory and at the same time provide a strong foundation to leverage Dr. Reddy's global product development and marketing infrastructure to build a significant generics business in Europe in the long-term," Dr. Reddy's said.

Shares of Dr. Reddy's were gaining $1.63, or 6.2%, to $27.98.

This story was created through a joint venture between and IRIS.