| Khorakiwala: Booster dose
Mumbai, May 6: Wockhardt Ltd is acquiring Esparma, a German pharmaceutical company, for $11 million in a bid to strengthen its presence in the European market. The acquisition is expected to boost its international brand equity.
The drug major will fund the acquisition through internal accruals. This is the third international takeover by Wockhardt. Earlier, it had purchased Wallis Laboratory and CP Pharmaceuticals, both in the UK.
Wockhardt chairman Habil Khorakiwala said, “Esparma provided the right vehicle and was an attractive value proposition for our entry into Germany, the largest market of the European Union.”
He pointed out that the German firm’s strong presence in urology, neurology and diabetology, is in line with Wockhardt’s therapeutic strengths.
Wockhardt has acquired Esparma’s business, sales and marketing units, while the production facility has been bought by another company. Wockhardt will have access to it for two years and subsequently move manufacturing to its own facilities in the UK and India.
Wockhardt has incorporated a new company, Wockhardt Germany, GmbH, to facilitate the acquisition. The new company will have 70 employees, mostly in sales, marketing and regulatory functions.
Following the acquisition, Europe will become the highest contributor to Wockhardt’s total sales at 40 per cent, overtaking India.
Esparma recorded $20 million sales in 2003. It has a portfolio of 135 marketing authorisations, of which 67 are in Germany.