Pharmaceutical company Dr. Reddy's Laboratories Ltd. (NYSE:RDY) has entered into a definitive agreement to acquire Nimbus Health GmbH, a medical cannabis-focused licensed pharmaceutical wholesaler from Germany. Under the agreement, Dr. Reddy's will acquire Nimbus Health for an upfront payment plus performance and milestone-based earn-outs over the next four years
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 be operating under the brand Nimbus Health and as a wholly-owned subsidiary of Dr. Reddy's.
"Medical cannabis is increasingly used to address and treat high unmet medical needs, especially in pain management and CNS," Patrick Aghanian, Head of European Generics, Dr. Reddy’s, stated. "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. We are very excited that with Nimbus joining Dr. Reddy's family, together with Linus and Alessandro, we embark on a new, exciting journey of medical cannabis, which supports Dr. Reddy's mission of meeting unmet patient needs."
Photo: Courtesy of Elsa Olofsson on Unsplash
