This story is from August 26, 2006

Wockhardt may buy Irish drug firm for 100 m euros

Tinesh Bhasin & Reeba Zachariah / TNN / Aug 26, 2006, 11:15 IST

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It now seems that the efforts of domestic pharma companies to become world players are bearing fruit.

Wockhardt may buy Irish drug firm for 100 m euros

MUMBAI: It now seems that the efforts of domestic pharma companies to become world players are bearing fruit. After Dr Reddys acquisition of Betapharm and Ranbaxy Laboratories Terapia, now it seems to be the turn of Mumbai-based Wockhardt to buy a European company.
The company's destination is Ireland and the target is Tipperary-based Pinewood Laboratories.The Habil Khorakiwala promoted company, which makes anti-diabetic drugs, is learnt to have valued the Irish company at above 100 million euros (about Rs 605 crore).
Wockhardt started talks with lenders to raise funds for the buyout. A Wockhardt spokesperson declined to comment. The company had been scouting for a large European company for quite a while after losing Betapharm to rival Dr Reddy's which paid 480 million euros (Rs 2,550 crore).
The acquisition will be funded through a mix of debt and equity, though it had readied a warchest of $900 million raised in two tranches last year. The company is eyeing other acquisitions in Europe and the US for which it will utilise the money raised.

Wockhardt is also touted to be in the race to acquire US-based biopharmaceutical firm Cambrex, which is valued at $500 million.
Like in the case of Betapharm, the race for Pinewood would also be closely contested. Wockhardt's domestic rival Ahmedabad-based Zydus Cadila is learnt to have shown interest in acquiring Pinewood which has annual sales of over 46.2 million euros.
Overseas generic makers in the race include Teva Pharmaceutical from Israel, US-based Barr Pharmaceuticals, Germany's Stada and Actavis from Iceland.
If this acquisition goes through, it will boost Wockhardt's growing European presence. The company's European operations have been growing exponentially with sales outgrowing its Indian operations.
Wockhardt can also add a host of clients to their order book and client network in around 30 countries. Its European sales are 41% of the company's overall sales, says an analyst.

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