| In the third-largest overseas acquisition by an Indian pharmaceutical company, Mumbai-based Wockhardt Ltd has announced that it is buying the entire equity of Paris-based Negma Laboratories for $265 million (Rs 1,087 crore) in an all-cash deal.
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| Negma, which raked in $150 million (Rs 615 crore) as turnover last year, holds 172 patents and sells three patented drugs in France.
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| “Negma has a rich pipeline of drugs (drugs under development) and many are in the pre-clinical stage with promising results,” said Wockhardt Chairman Habil Khorakiwala at a press conference in Mumbai today.
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The acquisition, at 9.7 times the earning before interest, tax, depreciation and amortisation, marks Wockhardt’s advent in France, making it the third Indian pharma company to gobble up a counterpart there.
M&A TONICS
Largest overseas acquisitions by Indian pharma companies |
Acquired
company |
Acquirer |
Enterprise
value
($million) |
| Betapharm |
Dr.Reddy's |
578 |
| Terapia |
Ranbaxy |
335 |
| Negma |
Wockhardt |
265 |
| Docpharma |
Matrix |
238 |
| Pinewood |
Wockhardt |
150 |
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| Zydus Cadila bought Alpharma in 2003 for about Rs 29 crore and re-named it Zydus France.
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| Ranbaxy Laboratories entered France in 2004 by acquiring RPG, the generics arm of Aventis, and re-christened it Ranbaxy Pharmacie Generiques (RPG). Dr Reddy’s operates in France through a subsidiary.
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| The generics market in France is valued at $2 billion annually and is growing at 24 per cent a year.
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| “We are funding the acquisition from cash reserves of $250 million and leveraged funding. We will close the deal in four to six weeks,” said Khorakiwala.
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| Wockhardt’s shares went up by 0.47 per cent to Rs.430.85 at the Bombay Stock Exchange today. |
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