Buy will be EPS-accretive in two quarters
MUMBAI: Wockhardt has scooped up US-based Morton Grove Pharmaceuticals for $38 million in a move that enhances its global presence.
Morton Grove, maker of oral liquid medicines and speciality skin products, has annual revenues of $52 million.
Habil Khorakiwala, Wockhardt’s chairman, said, “We got it at the given valuations. The acquisition will increase Wockhardt’s earnings per share (EPS) immediately. We are planning to make it EPS-accretive in two quarters.”
“After this acquisition, US market will add $100 million to our revenues,” he added. The market currently contributes about $50 million to Wockhardt’s revenues.
This is Wockhardt’s third acquisition in 12 months, following Ireland’s Pinewood last October and France’s Negma in May. Asked if the company was hungry for more, Khorakiwala ruled out any further acquisition in the short-term.
“Currently, we are not actively looking out. Acquisition may happen if something irresistible comes our way,” he said.
The company has been trying to expand its presence in the US for some time now.
“It (the acquisition) provides entry into the US generic market with a portfolio of 31 products. About 13 of these occupy the top slot in their therapeutic areas. Remaining are in top three,” said Khorakiwala.
About a third of the US firm’s revenues come from the Lindane range of skin related medicines.
A Wockhardt release said, “Our product range will swell to about 54 products for the US, of which 23 products are currently being marketed by Wockhardt’s US subsidiary.”
