FRANKFURT, Germany & HYDERABAD, India–(BUSINESS WIRE)–Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, together with its subsidiaries together referred to as “Dr. Reddy’s”) announced today that it has entered into a definitive agreement to acquire Nimbus Health GmbH (“Nimbus Health”) . Nimbus Health is a licensed, private German pharmaceutical wholesaler focusing on medical cannabis in Germany. Dr. Reddy’s will acquire Nimbus Health for an upfront payment plus performance and milestone-based severance over the next four years
Founded in 2018, Nimbus Health is one of the pioneer medical cannabis companies in Germany. The acquisition will allow Dr. Reddy’s to build on Nimbus Health’s strengths and introduce medical cannabis-based medicines as a promising treatment option for patients. The company will operate under the Nimbus Health brand and as a wholly owned subsidiary of Dr. Reddy’s.
The demand for medical cannabis has increased in recent years with the legalization of medical cannabis by the German Parliament (Bundestag) in 2017. The medical cannabis market in Germany is already valued at around 122 million. € with a growth of ~25% in 2021 compared to 2020 and a CAGR of ~55% since 2017, making Germany one of the largest markets in Europe. Approximately 150,000 German patients benefit from medical cannabis for their unmet health needs1.
The closing of the transaction is subject to customary closing conditions.
Patrick Aghanian, Head of European Generics, Dr. Reddy’s, commented“Medical cannabis is increasingly being used to address and treat unmet medical needs, particularly in pain management and the CNS. Additionally, with numerous studies being conducted to leverage and introduce medical cannabis, we believe this is a critical area for future healthcare delivery Nimbus Health has established itself as a fast growing, highly reputable, pioneering platform with an excellent network of business partners and access to know-how, where German health insurance funds fully reimburse medical cannabis, the ability to leverage and access new geographies will be key in its mission to address unmet patient needs.
“We were truly delighted when Dr. Reddy’s approached us and recognized Nimbus’ highly efficient import, registration and launch platform for various medical cannabis brands in Germany. The close alignment between the values of the Dr. Reddy’s and Nimbus has given us the confidence that we can stay focused on existing businesses and develop future projects together. We are pleased to work with Dr. Reddy’s to activate synergies supporting growth across all sectors.” commented Linus Maximilian Weber, Founder and CEO of Nimbus Health.
Dr. Alessandro Rossoni, co-founder and CEO of Nimbus Health, says: “The relationship between Dr. Reddy’s and Nimbus Health has developed very positively over the past year. It felt natural to take the next steps together. We are delighted that Dr. Reddy’s recognized the potential of Nimbus on the medical cannabis market. Dr. Reddy’s commitment marks an important milestone in the development of medical cannabinoid-based medicines and opens up new possibilities for the benefit of patients. We are confident that being part of Dr. Reddy will help us move our operations to the next level and further increase our impact in this rapidly developing market.
About Nimbus Health GmbH
Nimbus Health is a fully licensed pharmaceutical wholesaler and manufacturer from Germany with its own warehouses and an independent sales force to promote medical cannabis products to pharmacists. Its mission is to provide critically ill patients with the highest quality medical cannabis products from trusted sources, consistently and sustainably.
About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for a healthier life. Through its business, Dr. Reddy’s offers a portfolio of products and services, including APIs, personalized pharmaceutical services, generics, biosimilars and differentiated formulations. Our main therapeutic areas of interest are gastrointestinal, cardiovascular, diabetes, oncology, pain management and dermatology. Dr. Reddy’s operates in markets around the world. Our main markets include USA, India, Russia and CIS countries and Europe. For more information, log on to: www.drreddys.com
Disclaimer: This press release may contain statements of future expectations and other forward-looking statements based on management’s current beliefs and assumptions and involving known and unknown risks and uncertainties that could cause actual results, performance or events differ materially from those expressed. or implied in such statements. In addition to forward-looking statements due to context, the words “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe” , “estimate”, “predict”, “potential” or “continuing” and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those indicated in such statements due to, without limitation, (i) general economic conditions such as financial market performance, credit defaults, foreign exchange rates, interest rates, persistence levels and insured loss frequency/severity, (ii) loss levels and mortality and morbidity trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and central bank and/or government policies, (v) l the impact of acquisitions or reorganizations, including related integration issues, and (vi) the sensitivity of our industry and the markets for which our products and services and those of our customers are intended to economic downturns resulting from natural disasters, epidemics, pandemics or other widespread diseases, including the coronavirus ( or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed in the “Risk Factors” and “Forward-Looking Statements” sections of our report. Annual Report on Form 20-F for the year ended March 31, 2021. The Company assumes no obligation to update the information contained herein.
1 Source: INSIGHT Health – Green Line NPI (Sell in/Pharmacy Purchase)