Wanbury to merge with DOCL in equity swap

New Delhi, Jun 20 (UNI) Wanbury, the world's largest producer of Metaformin, a diabetes management product, today said it has bought the controlling stake in Doctor Organic Chemicals Limited DOCL, and plans to merge with the company soon.

''We will merge DOCL with Wanbury. The deal is an equity swap and DOCL promoters will get a stake in Wanbury for their 49 per cent equity,'' Wanbury Finance Direcor Ashok Shinkar said.

DOCL has already commenced contract-manufacturing products like Gabapantine and Mefanamic Acid for large MNCs.

The company recently acquired Pharmaceutical Products of India (PPIL)-a sick Mumbai-based bulk drug maker. Wanbury entered into a scheme of arrangement with banks and financial institutions that hold PPIL's assets, which include three manufacturing facilities and one formulations facility.

This acquisition will help Wanbury boost its active Pharmaceutical Ingredients (API) business.

Speaking on the future course of the company, Mr Shinkar said, ''We are aggressively looking to acquire companies with a strategic fit, nationally and internationally, to become quality player in our markets.'' Internationally, Wanbury is eyeing acquisitions of European business with sales of EUR 20-25m. ''We are looking for companies with a steady income stream, with strong generic pharmaceutical and local marketing strengths.'' Mr Shinkar added.

Wanbury manages 3 multi-product plans, including two USFDA approved facilities across India. Its production facilities are located at Patalanga, Tanuku and Tarapur. Wanbury exports to over 50 countries, and over 65 per cent of its products are sold in the regulated markets in regions such as the US and Europe.

UNI RA CS HT1632