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Wednesday, Jul 09, 2003

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Wockhardt buys CP Pharma for Rs 82 cr

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MUMBAI, July 8

DOMESTIC pharma company, Wockhardt Ltd, on Tuesday announced acquisition of the UK-based CP Pharmaceuticals Ltd, for a total consideration of 10.85 million (Rs 82.46 crore). With this acquisition, Wockhardt 's turnover will cross Rs 1,100-crore mark.

Mr Habil Khorakiwala, Chairman, Wockhardt Ltd, said that the company will be funding the acquisition through internal accruals and borrowings.

`With this acquisition, Wockhardt will be able to establish a significant presence in the European Union and especially the UK market,'' he added.

Wockhardt 's international business will now account for 53 per cent of the total revenue and in the UK itself, the company's business will be over 50 million (Rs 380 crore) including that of its 100 per cent UK subsidiary Wallis Laboratories.

CP Pharmaceuticals has four key businesses consisting of a branded portfolio of hospital drugs, generics, contract manufacturing and exports. The company is a supplier to UK's National Health Service (NHS) and reported sales of 34 million in 2003. NM Rothschild was the advisor for the deal.

Addressing a press conference here today, Mr Khorakiwala, for the `time being', the two UK subsidiaries, Wallis Laboratories and CP Pharmaceuticals will remain separate entities. ``We will also be retaining some management people in the company. The current Chairman of CP Pharma, Mr Charles Savage, will be retained as a consultant. Wockhardt will file for its product approval in the UK through CP Pharmaceuticals. This could include abbreviated new drug applications as well, he added.

"There were speculations that we are up for sale. But today we are here to announce an acquisition by us, " said Mr Khorakiwala, dispelling rumours that the promoters are considering selling their 74 per cent stake in the company.

Shares of Wockhardt Ltd ended higher today on the BSE by 4.60 per cent at Rs 401.65 with 1.10 lakh shares being traded. On the NSE, the share price went up by 4.70 per cent to close at Rs 401.75 with 2.02 lakh shares changing hands.

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Wockhardt buys CP Pharma for Rs 82 cr

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