Wanbury to acquire UK generics firm

Wanbury, one of the fast growing pharmaceutical companies in the small and medium enterprises (SME) segment, is close to acquiring a branded generics company in the UK.

Sources close to the development said the company is in advanced stages of discussions with the UK-based company. Wanbury's investment in the overseas deal is expected to be in the range of $20 to $25 million, they added.

Technomark UK, a leading consultant in the area of mergers and acquisitions in Europe, is the advisor in the deal.

Wanbury, which is a major player in the export space targeting regulated markets, aims at strengthening its presence in European markets with the UK deal.

Though the company executives confirmed the overseas acquisition plan, they said the company has not yet finalised its decision. Though it had struck deals with domestic companies, Wanbury is planning an overseas acquisition for the first time.

Recently, the company and its associates had acquired 51 per cent stake in Doctors Organic Chemicals (DOCL), at an enterprise value of about Rs 37 crore.

DOCL has a USFDA approved facility and presently sells active pharmaceutical ingredients in regulated markets like the US, Europe and few other overseas markets. DOCL also does contract manufacturing for pharma MNCs.

Wanbury is also planning to enter contract manufacturing space in a big way.

In fact, the DOCL facility was the second USFDA approved plant in the company's fold and with the European acquisition, the company would have one more facility with international regulatory compliance, along with front operations in the Europe.

The Navi Mumbai-based company had also passed a resolution in September 2005 for the merger of another company, Pharmaceuticals Products of India with the company, pursuant to the applicable provisions of the Sick Industrial Companies (Special Provisions) Act.

Having received the Bombay High Court's approval, the merger is now likely to be effected soon, subject to other mandatory clearances.

Wanbury Limited was formed with the amalgamation of Pearl Organics Limited and Wander Limited.

The company, which had set up a new R&D center at Navi Mumbai, has plans to expand through brand extensions, brand acquisitions and widening of the therapeutic focus of the company.