Wockhardt acquires Negma Laboratories in France

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Pharmaceutical and biotechnology major Wockhardt Limited today announced the acquisition of Negma Laboratories, the fourth largest independent, integrated pharmaceutical group in France with sales of $ 150 million. Wockhardt has acquired Negma Laboratories in an all-cash deal worth $ 265 million.  The transaction is valued at 1.8 times the sales and 9.7 times the EBITDA.

 

With this acquisition, Wockhardt becomes the largest Indian pharmaceutical company in Europe with more than 1500 employees based in the continent.

 

"France-based Negma is a unique acquisition for Wockhardt. It is a research based pharmaceutical company with 172 patents.  The acquisition will allow Wockhardt to extend this patented portfolio to other European markets where Wockhardt enjoys a strong presence," said Wockhardt Chairman Habil Khorakiwala. "Further, it will provide us the right entry vehicle to enter the French generics market valued at $ 2 billion, leveraging Wockhardt's robust EU portfolio and impressive pipeline. With this acquisition, Wockhardt will enjoy a pan-European presence, covering all the key markets of Europe - namely Germany, UK, Ireland and now France."

 

Negma has a strong research and life cycle management capability. It owns a rich portfolio of 172 patents and has an exciting range of products in various stages of development. The company holds leading positions in the osteoarthritis/ rheumatology, phlebotonic and the arterial hypertension segments.

 

"With this acquisition, we have stepped up our sales and are on the fast track to achieving our corporate strategy of the $1 billion turnover by 2009," said Khorakiwala. 

 

With the Negma acquisition, Wockhardt's European business will now account for more than 60% of the company's total revenues. Wockhardt presently has a portfolio of 130 products in the European market. In the next one year, Wockhardt will see the launch of 24 more products in Europe.

 

"We have a proven track record of successful value-creation post acquisitions. We expect to demonstrate the same integration momentum with Negma as with our other acquisitions," said Khorakiwala.

 

Cleary Gottlieb Steen & Hamilton LLP was the legal advisor for Wockhardt in this transaction. Aforge Finance and Dechert were advisors to Negma. 

 

Negma is Wockhardt's third acquisition in less than 12 months. Earlier Wockhardt acquired Pinewood (Sales $ 70 million) and Dumex (Sales Rs 60 crores).

 

Negma is Wockhardt's fifth acquisition in Europe, after Wallis, CP Pharmaceuticals (both in UK), Esparma in Germany and Pinewood Laboratories in Ireland. With the Negma acquisition, Wockhardt will now have four manufacturing facilities in Europe having API (bulk drug), injectables, tablets, capsules and creams. 

 

Wockhardt Limited is a global pharmaceutical and biotechnology major with an innovative research and development programme. Wockhardt has made five successful acquisitions in Europe including Negma. Wockhardt employs about 5500 people worldwide belonging to 14 different nationalities.  

 

Sourced From: Corporate Voice|Weber Shandwick