fe Bureau
Troubled pharma major Wockhardt Limited has sold its German business Espharma to Mova GmbH, a subsidiary of Lindopharm GmbH, Germany, for an undisclosed amount.
Wockhardt had acquired Esparma in May 2004 for $11 million (around Rs 55 crore). The acquisition gave Wockhardt a strategic entry point into Germany, the largest generics market in Europe. Esparma has a presence in the segments of urology, neurology and diabetology. During its buyout, Espharma had a portfolio of 135 marketing authorisations, of which 67 were in Germany. It had nine international patents and 94 trademarks.
On Wednesday, shares of Wockhardt closed at Rs 130, down by Rs 12 or 8.38%.
Wockhardt?s Europe business grew at 30% last year. The company is also reported to have kept its other European subsidiaries such as Pinewood in Ireland and Negma in France on the block.
Meanwhile, Wockhardt?s plans of selling its major hospitals hit a roadblock on Wednesday as Apollo Hospitals officially dropped plans to buy them due to differences in valuation. Wockhardt has kept hospitals in three cities?Mumbai, Bangalore and Kolkata?on the block. ?The premium they were charging did not make any sense for us, particularly in the locations, since we already have a significant presence in those locations,? Preetha Reddy, managing director, Apollo Hospitals said. In March this year, the Rs 2,600-crore Wockhardt said that it had decided to restructure its corporate debt by making a reference to Corporate Debt Restructuring (CDR) Cell through its banker ICICI Bank Ltd.
According to rating and advisory firm Crisil, as on December 31, 2008, Wockhardt?s debt has risen to Rs 3,777 crore, whereas the same was Rs 2,910 crore a year ago. Wockhardt Ltd has Rs 550 crore worth of foreign currency bonds due for redemption in October. The original conversion price was set at Rs 486 per share. Habil Khorakiwala and his family, who holds 75% in the company, has also pledged 40% shares in Wockhardt to financial institutions including IL&FS to raise around Rs 350 crore.
