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Mumbai-based pharma company Wockhardt Ltd is making inroads into the US market. The company, which has focused on Europe till now, has announced the acquisition of Morton Grove Pharmaceuticals, a liquid generic and specialty dermatology company in the US, reportedly for $38 million. Grove is a leading liquid generic and speciality dermatology company in the US with revenues of $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 No.1 market position.” Habil Khorakiwala, Chairman, Wockhardt Ltd said in a release.
The acquisition would boost Wockhardt's US revenue by providing a complete range of dosage forms tablets, capsules, liquids to injectibles. At present, the US contributes just about 9 per cent, while Europe contributes 52 per cent of Wockhardt's revenues, according to a report in The Economic Times.
Morton Grove is Wockhardt’s third international acquisition in the space of last 12 months. In October last year, Wockhardt acquired Pinewood, the largest generic company in Ireland and the largest supplier of liquid generic products in the UK. In May 2007, it bought over Negma, the fourth largest independent pharmaceutical company in France. These acquisitions in Europe have made Wockhardt the largest Indian pharmaceutical company in Europe.
Wockhardt has recently appointed an external consultant to integrate its various European acquisitions and to drive a pan-European strategy. Shearman & Sterling, acted as Wockhardt`s external legal counsel; ABN AMRO represented Morton Grove Pharmaceuticals in the transaction and Kirkland & Ellis LLP acted as Morton Grove's legal counsel.
The Hindu Business Line adds: Wockhardt may face legal issues post acquisition. One third of Morton Grove’s revenues come from the branded Lindane range of dermatological products. Lindane is a synthetic chemical initially developed as an agricultural insecticide and then formulated for medical use due to its antiparasitic efficacy against scabies and lice. Morton is believed to be facing several lawsuits filed pertaining to Lindane, and it is likely Wockhardt will have to handle them too.