Khorakiwala: Tactical move

Mumbai, July 28: Wockhardt will sell its nutrition business to Abbott for an undisclosed sum.

The pharmaceutical major had earlier divested its animal health division and its German business.

Wockhardt’s nutrition business comprises well-known brands such as the Farex, Dexolac and Nusobee infant foods. Its adult protein supplement Protinex is a segment leader.

Wockhardt chairman Habil Khorakiwala said, “At Wockhardt we invested and nurtured to build a valuable brand equity for these heritage brands and it was time for a specialised nutrition-focussed company as Abbott to be able to leverage its full potential in the global markets.”

He said the company had obtained a fair value for the divestment and it would continue to grow and show robust results in the future.

The transactions are subject to customary closing conditions and approvals. Wockhardt expects the dealings to close in the second half of 2009.

Last month, it sold its German business Espharma to Mova, a subsidiary of Lindopharm of Germany, for an undisclosed sum. It had acquired Espharma in May 2004 for $11 million.

The once-profitable company had reported a loss of Rs 159 crore for the year ended December 2008. It is believed that the company plans to sell part of its hospital business (Wockhardt Hospitals) and other divisions.

Apollo Hospitals and Fortis Healthcare were keen on a stake in Wockhardt Hospitalsbefore the former said it was not interested anymore.

Speculation is rife that Wockhardt may sell its French subsidiary Negma Laboratories and Irish subsidiary Pinewood.

It had bought Negma for $265 million in May 2007 and Pinewood for $150 million in 2006.

The divestments are seen as a move by the beleaguered firm to restructure its operations.