Mumbai: Pharma major Wockhardt today announced having acquired French pharmaceutical group Negma Laboratories for $265 million in cash. The acquisition will allow Wockhardt to extend this patented portfolio to other European markets where it enjoys a strong presence.

The transaction is valued at 1.8 times the sales and 9.7 times the Ebitda of the French firm.

Negma Laboratories is the fourth largest independent, integrated pharmaceutical group in France. France-based Negma is a unique acquisition for Wockhardt, as it is a research-based pharmaceutical company with 172 patents.

With this acquisition, Wockhardt would have more than 1,500 employees based in the continent and the European business would now account for more than 60 per cent of its total revenues, the company said in a statement to the Bombay Stock Exchange.

At present, Wockhardt has a portfolio of 130 products in the European market.

Negma holds leading positions in the Osteoarthritis, Rheumatology, Phlebotonic and the Arterial Hypertension segments.

"The acquisition would provide us the right entry vehicle to enter the French generics market valued at $2 billion, leveraging Wockhardt`s robust EU portfolio and impressive pipeline," Khorakiwala said.

Negma is Wockhardt`s fifth acquisition in Europe after Wallis, CP Pharmaceuticals (both in UK), Esparma in Germany and Pinewood Laboratories in Ireland, the company said.

With the acquisition, Wockhardt would now have four manufacturing facilities in Europe having API (bulk drug), injectables, tablets, capsules and creams.

"Wockhardt will now enjoy a pan-European presence, covering all the key markets of Europe, namely Germany, the UK, Ireland and now France," Khorakiwala added.

Cleary Gottlieb Steen & Hamilton LLP was the legal advisor for Wockhardt in this transaction. Aforge Finance and Dechert were advisors to Negma.