Mumbai: Oct 16th 2006: Wanbury Limited has acquired Spain-based Cantabria Pharma, in a deal valued at Euros 42 million. The acquisition will serve as an effective entry in the lucrative European market for Wanbury.

Cantabria Pharma sees a target of Euro 33 million in revenues for the first year, in the Ethical Formulation segment of the Spanish market with an EBITDA of Euros 8-10 million. Cantabria has product development worth Euros 6 million in the pipeline for the next year, and is expected to grow at CAGR of 15-20% over a five year period. This is a large acquisition for Wanbury, and there will be a considerable positive impact on the financials of Wanbury, on a consolidated basis.

“The acquisition of Cantabria Pharma will enable us to enter into the European Generic Markets, where we see good returns in the future. Wanbury is already catering to the European Markets through sale of APIs. We are also looking at bringing Cantabria’s products into India,” said Ashok Shinkar, Director Corporate Finance Wanbury Limited.

• A strong entry strategy for the rest of European Union(EU),
• New product developments and increased product introductions in the future.
• Leveraging manufacturing and R&D capabilities of Wanbury.
• Launch of pure generic drugs in Spain

The acquisition will be financed by a combination of internal accruals over the period of three years and term loans. Wanbury Limited has set a vision of Rs 1000 crores market capitalization by 2009.

Spain-based Cantabria Pharma is the Ethical Pharmaceuticals arm of Industria Farmaceutica Cantabria (IFC), IFC was formed as a subsidiary of Andromaco, which was acquired by Gruenthal, Germany in 1993-94... Cantabria Pharma then IFC launched its branded product Emeproton in 1997, and since then has expanded its portfolio to over 17 brands, focused on various therapeutic segments. Some of the areas where Cantabria operates are: traumatology, pain management, asthma, anti depressants, anti eplileptics, anti ulcerants, cephalosporins, beta blokers.

Wanbury Ltd. is the world’s largest producer of Metformin, a diabetes management product with production in excess of 3,000 tons. In addition to Metformin, Wanbury boasts of a strong product portfolio which includes Salsalate, Glucosamine, Mefenamic Acid, Tramadol, Amitryiptyline, Promethazine, Sertraline, Carvedilol, Ibuprofen, Gabapantene etc.

Created from the merger of Pearl Organics Ltd. and Wander Pvt. Ltd., the company exports to over 50 countries addressing the needs of over 200 customers across the globe. Wanbury sells to leading global generic players in regulated markets with three of the top five generic players in the US as customers.

Production facilities are located at Patalganga, Tanuku and Tarapur and plans are on to expand facilities in all three locations. The company has two R&D centres, one located in Turbhe, Navi Mumbai and the other at Chembur in Mumbai. The strength of the company’s R&D comes from a pool of highly skilled scientists supported by an excellent instrumentation facility.