Wockhardt buys Farex, Protinex

Pharmaceuticals major Wockhardt today announced the acquisition of Dumex India along with its two products Protinex and Farex from Royal Numico NV of The Netherlands for an undisclosed amount.

Protinex and Farex are well-known nutrition brands in the country for over 50 years with a combined annual sales of Rs 60 crore.

The acquisition is expected to double Wockhardt's nutrition products sales to Rs 120 crore. The acquisition follows Royal Numico's decision to focus on China and other markets. Rabo India Finance was the advisor to the Dutch company.

Wockhardt said it would change the acquired company's name, Dumex, within six months. Habil Khorakiwala, chairman, said: "The acquisition of Protinex and Farex is a critical milestone for our growth in nutrition business. Today's acquisition makes us the undisputed leader in medical nutrition. The global market for medical nutrition is worth $32.5 billion."

Royal Numico will offer technical know-how to Wockhardt for the manufacture of specialised sugar-free infant food products. At present, these products are imported from New Zealand and Malaysia under brand names, Dulac and Dupro, Wockhardt said.

Wockhardt leads with 15 per cent share of the Indian nutrition market, according to a recent ORG-IMS study. Wockhardt is also in talks with global companies for in-licensing medical nutrition products suitable for the Indian market.

In a separate statement, Royal Numico said Dumex "" its baby food franchise in India "" had suffered loss in the first quarter of 2006.

This sale would not have any financial impact on its results, Royal Numico said.

Shares of Wockhardt rose 5.41 per cent to Rs 380.10 today on the Bombay Stock Exchange against yesterday's close of Rs 360.60.