Dr. Reddy's Laboratories today announced that it has entered into a definitive agreement for the sale of its API manufacturing business unit located in Jeedimetla, Hyderabad, to Therapiva, an emerging generics pharmaceutical company.

This divestiture is being done by way of slump sale (as a going concern) and includes all related fixed assets (land and building), current assets, current liabilities, and its employees.

"The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures," said Sanjay Sharma, Executive Vice President & Head, Global Manufacturing Operations. "We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset."

Shares of the company gained Rs 80.65, or 3.29%, to trade at Rs 2,531.00. The total volume of shares traded was 11,970 at the BSE (10.06 a.m., Monday).