GROWTH PILL

New Delhi, Oct. 24: Wockhardt has acquired the US-based Morton Grove Pharmaceuticals for $38 million.

Company chairman Habil Khorakiwala said, “Morton Grove is strategic to Wockhardt. It provides entry into the US generic market with a portfolio of 31 products, 13 of which occupy the top position. This represents a strength in sales and marketing”.

Morton Grove specialises in liquid drugs that are taken orally. Wockhardt said the acquisition would boost its US revenues by providing a complete range of dosage forms.

After the acquisition, the company’s product range for the US market will rise to 54 from 23. Wockhardt has charted ambitious plans to boost its revenue from the US, the largest pharmaceutical market in the world.

The US contributes about 9 per cent of the company’s revenue (around Rs 200 crore), while Europe contributes 52 per cent. Company sources said the organic route would increase the US revenue three to four times by 2009. This company said it was also looking at acquisitions to push sales in the US.

This is Wockhardt’s third overseas acquisition in the last one year. In October 2006, the pharma major acquired Ireland-based generic pharmaceutical company Pinewood Laboratories for $150 million in an all-cash deal. In May 2007, the company bought Negma, the fourth largest independent pharmaceutical company in France, for $265 million.

Wockhardt recently appointed a consultant to integrate its various European acquisitions and devise a pan-European growth strategy.