Dr. Reddy's has entered into a definitive agreement to acquire Nimbus Health GmbH. Nimbus Health is a privately owned, licensed pharmaceutical wholesaler from Germany 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.

Founded in 2018, Nimbus Health is one of the pioneer companies for medical cannabis 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 be operating under the brand Nimbus Health and as a wholly-owned subsidiary of Dr. Reddy's.  

The demand for medical cannabis has increased over the past years with the legalization of medical cannabis by the German Parliament in 2017. The medical cannabis market in Germany is already valued at 122 Mio. € with growth of 25% in 2021 compared to 2020 and a CAGR of 55 % since 2017, making Germany one of the largest markets in Europe. Around 150,000 German patients benefit from medical cannabis for their unmet health needs. 

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 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.”

 "We were really excited when Dr. Reddy's approached us and recognized Nimbus's highly efficient importing, registering, and launching platform for various medical cannabis brands in Germany. The close alignment between the values of Dr. Reddy's and Nimbus gave us the confidence that we can stay focused on the existing business and grow future endeavors together. We are glad to work with Dr. Reddy's to activate synergies supporting growth in all sectors." commented Linus Maximilian Weber, Founder and Managing Director of Nimbus Health.