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Wockhardt to buy French pharma co Negma Lerads
Wockhardt is going to buy French pharmaceutical company Negma Lerads. It says that the acquisition of Negma Lerads is valued at USD 265 million, reports CNBC-TV18.
Wockhardt is planning to acquire French pharmaceutical company Negma Lerads. The acquisition of Negma Lerads is valued at USD 265 million, reports CNBC-TV18.
The pharma major expects Europe sales to cross USD 400 milllion post-acquisition. Habil Khorakiwala, Chairman, Wockhardt stated that the acquisition is aimed at positioning Wockhardt as a top Indian Pharma company in Europe.
Excerpts from CNBC-TV18's exclusive interview with Habil Khorakiwala:
Q: Tell us about the acquisition?
A: Negma Laboratories is a French company and it is the first research based pharmaceutical company that we have acquired. This is not only the first for Wockhardt but it is also a first for India.
The value of this acquisition is about Rs 1100 crore or USD 265 million and last year's sales was USD 150 million, so therefore it is only 1.8 times the sales multiple and 9.7 times the Ebitda multiple.
Q: When do these numbers start flowing in for Wockhardt?
A: We have signed an agreement this morning and expect it to close within four to six weeks, after which it will flow into the 2007 numbers.
Q: Can we expect the numbers in the second quarter?
A: I do not know about the second quarter. But, it will definitely come fully third quarter onwards.
Q: How are you going to fund this acquisition?
A: Funding would come primarily from my internal sources. We are sitting on a cash of over USD 200 million and would also be doing a leverage funding against the target itself. Collectively, the funding is already in place, in addition to which, we also intend to raise about Rs 500 crore via the QIP route.
Q: You have given a guidance of USD 500 million turnover in this year and USD 1 billion for 2009. Would you revise them upwards for this acquisition?
A: Of course, this sale was not factored into our acquisition sale for 2007 guidance; so I think our new guidance will be about USD 590 million.
The pharma major expects Europe sales to cross USD 400 milllion post-acquisition. Habil Khorakiwala, Chairman, Wockhardt stated that the acquisition is aimed at positioning Wockhardt as a top Indian Pharma company in Europe. 
