Wockhardt buys CP Pharma

Mumbai: Wockhardt Ltd has announced that it has acquired the UK-based CP Pharmaceuticals Ltd for a total consideration of Rs 82.46 crore.

Wockhardt chairman Habil Khorakiwala says his 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."

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

Khorakiwala says Wockhardt''s two UK subsidiaries, Wallis Laboratories and CP Pharma, will remain separate entities. "We will also be retaining some management people in the company. The current chairman of CP Pharma, Charles Savage, will be retained as a consultant. Wockhardt will file for its product approval in the UK through CP Pharma."