Mumbai: Drug maker Wockhardt Ltd on Wednesday said it has sold a business it had acquired in 2004 to Mova GmbH, a subsidiary of Lindopharm GmbH, for an undisclosed sum.
Fund crunch: Wockhardt Ltd chairman Habil Khorakiwala. Madhu Kapparath / Mint
Wockhardt, India’s sixth largest drug manufacturer by sales, had in 2004 acquired the German business of Esparma GmbH for $11 million (Rs49 crore at then prevailing rates), its third overseas acquisition.
However, the deal only covered its businesses, sales and marketing organization and the name of the company and did not include the company’s factory.
Wockhardt said in a statement that it continues to be on a growth track and that this initiative is the first step towards its ongoing strategy to restructure, rationalize and optimize its businesses and raise capital by divesting some smaller operations and non-core businesses.
“Wockhardt is reinventing itself by taking fundamentally strong and positive steps,” the statement said.
The company is under financial pressure due to short-term debts and a $140-million worth of foreign currency convertible bonds due for redemption in October. It is also in discussion with US-based drug maker Pfizer Inc. to divest part of its businesses.
In an unrelated development, Preetha Reddy, managing director of Apollo Hospitals Enterprise Ltd, said on Wednesday in Kolkata that it has dropped plans to buy some hospitals from Wockhardt Hospitals Ltd due to differences over valuation.