Wockhardt picks up German company
By siliconindia   |   Wednesday, 12 May 2004, 19:30 IST
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MUMBAI: Wockhardt has acquired the business of German pharmaceutical company esparma. The deal involves a consideration of $11m (Rs 49 crore) and will be funded through internal accruals. “Through this acquisition, Wockhardt has gained an entry into the German market. It will also help strengthen the company’s presence in the European Union,” said Habil Khorakiwala, chairman of Wockhardt. This acquisition will be Wockhardt’s third global acquisition, all of which have been in Europe. esparma recorded sales of $20m (Rs 90 crore) and a profit of $2m (Rs 9 crore) in ’03. The company has a portfolio of 135 marketing authorisations, of which 67 are in Germany. It also has nine international patents and 94 trademarks. “esparma was an attractive value proposition for our entry into Germany, which is the largest market of the European Union. The company’s strong presence in urology, neurology and diabetology, is in line with Wockhardt’s therapeutic strengths,” Khorakiwala added. The deal is unusual in its structuring. Wockhardt has acquired esparma’s business and the sales and marketing organisation. It has not acquired the production facilities of the company. “We will continue to use esparma’s production facilities for the next two years. After that, we will move the manufacturing of the products to our own facilities in UK and India,” Khorakiwala said. Wockhardt has incorporated a new company Wockhardt Germany, to facilitate the new acquisition.

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