Wockhardt sells German biz Esparma

Debt-ridden Wockhardt Ltd has divested its German business Esparma to Mova GmbH, a subsidiary of Lindopharm GmbH, Germany, for an undisclosed amount. The development comes as the Mumbai-based drug maker sets about the process of restructuring its debt. Wockhardt had acquired Esparma’s business, sales and marketing operations in May 2004 for Rs 49 crore ($11 million).

According to the company press release, Wockhardt continues to be on the growth track and this initiative is the first step towards its ongoing strategy to re-structure, rationalise and optimise all of its businesses and raise fresh capital by divesting some of its smaller operations and non-core businesses.

Esparma clocked sales of about €18 million for the year ended December 2008 and has around 25 employees. Europe is Wockhardt’s single largest market, accounting for 54 per cent of its consolidated sales. Wockhardt, however, was saddled with Rs 3,400 crore debt as on December 2008. The company has since stated its intent to exit its non-core businesses such as animal health, besides seeking strategic partners for its biotech and its hospitals business.