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Our Bureau

Mumbai , June 20

With two domestic acquisitions in two years, Mumbai-based pharma company Wanbury is now eyeing the European market.

The company is looking at European branded generic businesses with sales of about 20-25 million euros, said Mr Ashok Shinkar, Director (Finance).

Wanbury recently acquired bulk-drug company Pharmaceutical Products of India (PPIL), a sick Mumbai-based company that had been referred to the Appellate Authority for Industrial and Financial Reconstruction.

The cost of acquisition was about Rs 23 crore, a company official told Business Line.

While the acquisition would strengthen Wanbury's presence in the active pharmaceutical ingredients business, it would also bring into its fold PPIL's three manufacturing facilities.

Of PPIL's two bulk-drug plants at Tarapur and Patalganga, only the former plant is operational, the official said.

PPIL's third plant makes formulations or finished dosage forms of medicine and is located at Navi Mumbai.

Wanbury will retain the 50-odd employees at PPIL's Tarapur plant, besides investing in the Patalganga plant.

The Rs 100-crore Wanbury expects to merge PPIL and has sought regulatory permission, the official added.

Meanwhile, Wanbury is looking to merge with itself Doctor Organic Chemicals Ltd (DOCL), a company in which it acquired 51 per cent equity last year for Rs 37 crore.

Wanbury is also looking to acquire the remaining 49 per cent in an equity swap deal, according to the official.

The deals are being funded partly by proceeds from the $10-million GDR the company floated last October.

The remaining funds come partly from banks and through internal accruals. Wanbury will be the merged entity of both DOCL and PPIL, he added.

Wanbury was formed when bulk-drug company Pearl Organics acquired Wander, an erstwhile Sandoz subsidiary, in 2004. On Tuesday, the Wanbury scrip closed at Rs 80.10, up 2.30 per cent, on the BSE.

More Stories on : Outlook | Mergers & Acquisitions | Pharmaceuticals

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