Indian pharmaceutical major Wockhardt Ltd has acquired CP Pharmaceuticals Limited of UK at a consideration (equity value) of £10.85 million. With the acquisition, Wockhardt is claimed to have become the largest Indian pharmaceutical company in UK. CP Pharmaceuticals, a leading supplier to UK’s National Health Service (NHS), has current sales turnover to the tune of 34 million sterling pounds.
The largest overseas acquisition by an Indian pharmaceutical company, the acquisition, would catapult Wockhardt to the ranks of UK’s 10 generic pharmaceutical companies.
According to Wockhardt chairman Habil Khorakiwala, with a combined business of over 50 million sterling pound in the UK, Wockhardt now has a critical size for a push into the larger European Union. “We will leverage Wockhardt’s research and technology focus and cost effective manufacturing strengths to drive CP’s European business,” he added.
He informed that with this acquisition, Wockhardt’s turnover would cross the Rs. 1,100 crore mark, with 53 per cent of revenue coming from international markets.
CP Pharmaceuticals at present has four key business segments consisting of a branded portfolio of hospital drugs, generics, contract manufacturing and exports. It has 225 product licenses, providing the company with a significant growth potential. It has spent over seven million sterling pounds on acquiring brands in recent years. Besides, the company has long standing relationships with the UK hospital market and NHS purchasing authorities and major distribution groups.
Some of CP’s products have significant market share in the UK. These include natural insulins (Hypurin Bovine 100 per cent) Hypruin Porcine (34 per cent), unfractionated heparins (40 per cent), Hyalase (100 per cent) and Magnapen (57 per cent). Apart from the hospital product strength, CP Pharma has strategic relationships with some of the leading international pharmaceuticals, biotechnology and drug delivery technology companies for whom it undertakes contract manufacture in injectables, freeze dried products, solid does tablet formulations as well as liquids, creams and ointments.
The company has a special manufacturing license from MCA, which allows it to manufacture patent protected drugs under development. It also has Home Office license for the manufacture of Schedule 1 controlled drugs (highest schedule) as well.
CP Pharmaceutical is headquartered in Wrexham, near Manchester and employs about 450 staff. This is Wockhardt’s second acquisition in the UK after its first acquisition of Wallis Laboratory at Luton in 1998.