Thursday October 29, 12:40 PM

Wockhardt says no plans to divest biotech biz

MUMBAI (Reuters) - Drug maker Wockhardt Ltd (WOCKPHARM.NS : 171.5 +1.1) said on Thursday it does not plan to divest its biotech business.

The Economic Times reported on Thursday , citing an unnamed banker privy to the development, that Pfizer was looking to buy Wockhardt's biotech business, but the Indian drug maker is not inclined to sellout.

Pfizer has started the second round of due diligence and the move could also result in a strategic alliance, the paper said adding Pfizer may pay a hefty premium to get the business.

"We categorically deny any move on our part to divest the biotech business," a spokesman for Wockhardt said.

"Wockhardt has an ongoing policy for in-licensing and out licensing of products in our pharmaceuticals and biotech business. We will continue to pursue this approach in the future," he added.

Wockhardt has said it plans to sell some non-core assets and recently got lenders approval to restructure debt.

The world's biggest drugmakers have been on an acquisition spree over the past year and are eyeing Indian firms to gain access to emerging markets and cheap production, as well as to retake some of the business they've lost to inexpensive copycat versions of their blockbuster drugs.

(Reporting by Bharghavi Nagaraju and Narayanan Somasundaram; Editing by Ramya Venugopal)

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