Company Watch

Wockhardt acquires Morton Grove in the US

Our News Bureau - Mumbai

Wockhardt has announced the acquisition of Morton Grove Pharmaceuticals, a liquid generic and speciality dermatology company in the US having sales revenue of US$ 52 million. "Morton Grove is strategic to Wockhardt. It provides entry into the US generic market with a portfolio of 31 products, 13 of which occupy the number one market position. All others are in the top three. This represents a clear demonstrable strength in sales and marketing," said Habil Khorakiwala, Chairman, Wockhardt. "Wockhardt now has a strong position in the liquid market in USA and UK," he added. This acquisition will boost Wockhardt's US revenue by providing a complete range of dosage forms right from tablets, capsules, liquids to injectibles. Overall the product range would swell to around 54 products for the US market, of which 23 products are currently being marketed by Wockhardt USA.

Morton Grove is Wockhardt's third international acquisition in the space of last 12 months, having acquired in October 2006—Pinewood, the largest generic company in Ireland and the largest supplier of liquid generic products in the UK, and in May 2007—Negma, the fourth largest independent pharmaceutical company in France. These acquisitions in Europe propelled Wockhardt into becoming the largest Indian pharmaceutical company in Europe. Wockhardt has consistently demonstrated value-creation in all its acquisitions. To fast track the same, Wockhardt has recently appointed an external consultant to integrate its various European acquisitions and drive a pan-European strategy. Shearman & Sterling acted as Wockhardt's external legal counsel; ABN AMRO represented Morton Grove in the transaction and Kirkland & Ellis acted as Morton Grove's legal counsel.