Wockhardt pays $265 mn for French buy

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.

Negma, which raked in $150 million (Rs 615 crore) as turnover last year, holds 172 patents and sells three patented drugs in France.

"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.

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

Zydus Cadila bought Alpharma in 2003 for about Rs 29 crore and re-named it Zydus France.

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.

The generics market in France is valued at $2 billion annually and is growing at 24 per cent a year.

"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.

Wockhardt's shares went up by 0.47 per cent to Rs.430.85 at the Bombay Stock Exchange today.