GlaxoSmithKline and Dr. Reddy’s Laboratories have signed an agreement under which, GSK will transfer ownership of its penicillin manufacturing site in Bristol, TN, and rights for the Augmentin and Amoxil brands in the U.S. to Dr. Reddy’s. GSK will retain the existing rights for these brands outside the U.S. The transaction is expected to close in 1H11. Financial terms were not disclosed.

Abhijit Mukherjee, president of Dr. Reddy's Global Generics Business, said, “We are excited about this acquisition, as it allows us to enter the U.S. penicillin-containing antibacterial market segment and serve the needs of our customers and patients through manufacturing capabilities that did not previously exist within Dr. Reddy’s. This acquisition is in line with our strategy to significantly scale up our generics business in North America while providing an opportunity to explore additional synergy with our other businesses.”

“The sale of this site and divestiture of these products in the U.S. are a positive step forward for this manufacturing facility. The Bristol site has had a long and successful history with GSK. This sale will enable the facility to continue to provide oral penicillin-containing antibacterial products to meet the needs of patients in the U.S., and will allow GSK to focus Resources on our newer portfolio of differentiated products,” said Jean-Paul Reynaud, senior vice president of antibiotics and emerging markets supply for GSK.