The Hindu Business Line : Wockhardt acquires German firm Esparma

The acquisition does not include the company's manufacturing facility but covers the businesses, sales and marketing organisation and the name of the company, said Mr Habil Khorakiwala, Chairman, Wockhardt.

Wockhardt will continue manufacturing at Esparma facilities, which have been sold to another buyer.

The toll manufacturing agreement is for a period of two years, after which Wockhardt will shift manufacturing to its other existing facilities in the UK and India, he said.

Wockhardt has set up a company called Wockhardt Germany, GmbH to facilitate the acquisition.

The company will have 70 employees, most of them in sales, marketing and regulatory functions.

Esparma's strong presence in urology, neurology and diabetology is in line with Workhardt's therapeutic strengths, Mr Khorakiwala said.

"This acquisition will drive Wockhardt's growth into the European market,'' he told newspersons. "This acquisition gives us an entry into the largest branded generic market in Europe."

This is the third acquisition for Wockhardt. In 1998, it acquired Wallis Laboratories of the UK and CP Pharmaceuticals in 2003.

During 2003, Esparma recorded sales of $20 million (Rs 90 crore).

Wockhardt also stands to acquire Esparma's 135 marketing authorisations, of which 67 are in Germany. The company also has nine international patents and 94 trademarks.

With this acquisition, Europe will account for 40 per cent of Wockhardt's total sales; 40 per cent will come from India and 10 per cent each from the US and the rest of the world.

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