Wanbury Limited, the largest producer of diabetes drug, Metformin in the world and one of the fast growing pharmaceutical companies in India, is close to acquire a branded generics company in Spain for a consideration of about Rs 115 crore (approximately $25 million).
According to sources, the company will announce the Spanish deal early next week.
The company, which had been scouting for a strategic acquisition in the Europe, had engaged Technomark UK, a leading consultant in the area of mergers and acquisitions in Europe, to advise on the foreign acquisition, in May this year. Wanbury is currently a major player in the export space targeting regulated markets. The Spanish acquisition is expected to strengthen its presence in European markets, said sources.
The company executives, when contacted, declined to comment on the development. "We are looking at opportunities abroad for inorganic growth, any developments in this regard will be announced in due course," they added.
Wanbury, which is the world's largest producer of Metformin in excess of 3000 tons with sales to over 50 countries, had recently signed two domestic acquisition deals. However, it was looking at an overseas acquisition for the first time.
The company and its associates had recently acquired 51 per cent stake in Doctors Organic Chemicals, at an enterprise value of about Rs 37 crore. DOCL has a large US FDA approved facility and presently sells active pharmaceutical ingredients in regulated markets like US, Europe and few other overseas markets. DOCL also does contract manufacturing for global pharma companies.
Wanbury is also planning to enter contract manufacturing space in a big way. In fact, the DOCL facility was the second US FDA approved plant in the company's fold and with the European acquisition, the company would have one more facility with international regulatory compliance, along with front operations in the Europe.
The Mumbai-based company had also merged another local company - Pharmaceuticals Products of India Limited (PPIL) with the company, pursuant to the applicable provisions of the Sick Industrial Companies (Special Provisions) Act.
Wanbury Limited was formed with the amalgamation of the erstwhile Pearl Organics Limited and Wander Limited.
The company, which had set up a new R&D center at Navi Mumbai, has plans to expand through brand extensions, brand acquisitions and widening of the therapeutic focus of the company to leverage on its all India presence.
Plans are also afoot at the company to venture into generic formulations for the US markets.
Currently, Wanbury has production facilities located at Patalganga , Tanuku (both are US FDA approved) and Tarapur .It is also expanding production facilities at all the three locations at present.