Dr Reddy's Laboratories on Thursday said it has inked a pact to acquire Germany-based Nimbus Health GmbH.
The drug major said it has entered into a definitive agreement to acquire the company which is a privately owned, licensed pharmaceutical wholesaler focusing on medical cannabis in Germany.
Dr Reddy's will acquire Nimbus Health for an upfront payment plus performance and milestone-based earn-outs over the next four years, the Hyderabad-based drug maker said in a regulatory filing.
The company however did not share financial details.
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, it added.
''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,'' Dr Reddy’s Head of European Generics Patrick Aghanian noted.
As more European countries adopt the usage of medical cannabis, the ability to leverage and access newer geographies will be key, he added.
Nimbus Health Founder and Managing Director Linus Maximilian Weber stated that the close alignment between the values of Dr Reddy's and Nimbus gave the company the confidence that the entities can stay focused on the existing business and grow future endeavours together.
Nimbus will operate as a wholly-owned subsidiary of Dr Reddy's, the drug maker stated.
The demand for medical cannabis has increased over the past years with the legalisation of medical cannabis by the German Parliament in 2017.
The medical cannabis market in Germany is already valued at 122 million euros with growth of 25 per cent in 2021 compared to 2020, making Germany one of the largest markets in Europe.
Around 1,50,000 German patients benefit from medical cannabis for their unmet health needs.
(With inputs from PTI)
