SYDNEY: Dr. Reddy’s Laboratories Ltd. has entered into a definitive agreement to acquire Nimbus Health GmbH, Althea Group’s sales and distribution partner in Germany.
Dr. Reddy’s Laboratories explained that the acquisition will allow it to “build on Nimbus Health’s strengths and introduce medical cannabis-based medicines as a promising treatment option for more patients.”
It further advised that, following the acquisition, the company will be operating under the brand Nimbus Health, as a wholly-owned subsidiary of Dr. Reddy’s.
Dr. Reddy’s will acquire Nimbus Health for an upfront payment plus performance and milestone-based earn-outs over the next four years. The closing of the transaction is subject to customary closing conditions.
In announcing the acquisition, Dr Reddy’s Head of European Generics, Patrick Aghanian commented: “Medical cannabis is increasingly used to address and treat high unmet medical needs, especially in pain management and CNS. Further, with numerous studies being conducted to leverage and introduce medical cannabis, we believe this is a must-be field for future healthcare delivery.
Nimbus Health has established itself as a fast-growing, highly reputable, pioneering platform with an excellent network of trade partners and know-how access, where the German sick-funds fully reimburse medical cannabis. As more European countries adopt the usage of medical cannabis, the ability to leverage and access newer geographies will be key.”
Nimbus Health Founder and Managing Director, Linus Maximilian Weber added: “We are very confident that being part of Dr. Reddy’s will add significant scale and efficiencies within our operations, and further increase our impact in this quickly developing market. Althea is an industry leading brand of cannabis-based medicines, and we are extremely proud to continue to represent the brand in Germany.”
AGH CEO, Joshua Fegan said: “Althea is delighted to welcome Dr Reddy’s as a global partner, and we look forward to being part of their journey into medicinal cannabis. This acquisition marks another investment from a globally recognised pharmaceutical company into our industry, and it is fantastic that Althea is a part of that story. I envision further investments to come from ‘big pharma’, as Althea’s cannabis-based medicines, amongst other brands, continue to be prescribed to many tens of thousands of patients across the world.”