INDIA BUSINESS WORLD - APRIL - MAY 2007
The Month that was ...

WOCKHARDT MAKES INDIA'S THIRD LARGEST PHARMA ACQUISITION

In the third-largest overseas acquisition by an Indian pharmaceutical company, Mumbai-based Wockhardt Ltd is buying 100% in Paris-based Negma Laboratories for $265 million in an all-cash deal. The deal is also significant as it is the first time that an Indian Pharma company has acquired a non-generic company with 172 patented products and a research facility that has the potential to discover newer products. Wockhardt will pay 9.7 times the EBIDTA for the fourth largest French pharma company, which recorded sales of $150 million in 2006.

With this acquisition, Wockhardt becomes the largest Indian pharmaceutical company in Europe with more than 1500 employees based in the continent. It would also mark its entry into the $2-billion France market and European business will now account for more than 60% of the company's total revenues.

Wockhardt has a portfolio of 130 products in the European market. In the next one year, Wockhardt will see the launch of 24 more products in Europe. The acquisition will also help Wockhardt to expedite its target of $1 billion turnover by 2009. Negma is Wockhardt's third acquisition in less than 12 months. Earlier Wockhardt acquired Pinewood (sales $ 70 million) and Dumex (Sales Rs 60 crore).