Wockhardt acquires German company

esparma GmbH valued at Rs 49 crore.

Domestic pharmaceuticals company Wockhardt on Thursday announced the acquisition of a German pharmaceutical company esparma GmbH for Rs 49 crore.

The acquisition marks the drug major's foray into Germany, the largest branded generic market in Europe, and is its third acquisition in Europe after it acquired two UK-based companies, Wallis Laboratories in 1998 and CP Pharmaceuticals in 2003.

The acquisition does not include the manufacturing units of esparma. While it will initially have access to esparma's production facilities for a limited period, Wockhardt plans to move the manufacturing of the products to its own facilities in the UK and India.

esparma has a portfolio of 135 marketing authorisations, of which 87 are in Germany, and recorded sales of Rs 90 crore in 2003. It has nine international patents and 94 trademarks. The employee strength of the company is close to 70, of which the marketing and sales force accounts for 80 per cent.

Wockhardt Chairman Habil Khorakiwala said: "The acquisition would be funded through internal accruals. esparma's presence in urology, diabetology and neurology is line with Wockhardt's therapeutic strengths. esparma emerged as the right vehicle and an attractive value proposition for our entry into Europe's largest market."