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Wockhardt buys out Rhein in jt venture

Our Bureau

MUMBAI, Sept. 6

THE Mumbai-based drug maker, Wockhardt Ltd, has bought out its partner, Rhein Biotech GmbH in the 50:50 joint venture company - Wockhardt Rhein Biopharm Ltd - in a non-cash deal.

For its 50 per cent equity of Rs 9 crore, Rhein Biotech will be allowed to sell Hepatitis B vaccine in India. The company has the option to source the vaccine from Wockhardt.

Under the agreement, the technical collaboration between the tow companies will continue.

``The restructuring of the joint venture allows Rhein to sell its vaccine in India, thus having a limited presence,'' said a company spokesperson.

The joint venture was formed in 1996 to jump-start Wockhardt's entry into the biotechnology market.

According to the company, Wockhardt has ``uniquely'' restructured its joint venture with the German company by buying out its total equity while continuing its technical collaborative partnership.

On the strength of the joint venture, Wockhardt entered the vaccine market with the recombinant Hepatitis-B vaccine, Biovac-B in 2000. Biovac-B now has a dominant market share in the domestic vaccine market, said the company spokesman.

Wockhardt has two products in its biotechnology stable, Biovac-B and EPOX or recombinant-erythropoietin. The company also plans to enter the human insulin market in due course.

The company plans to set up a biotechnology park in Aurangabad with separate manufacturing facilities for every product. For the Hepatitis B vaccine, WOckhardt is setting a facility with a capacity to produce up to 100 million pediatric doses.

Mr Habil Khorakiwala, Chairman, Wockhardt Ltd, said: ``Wockhardt is looking at taking its Biovac-B vaccine to global markets. The worldwide market for the vaccine is about $1.5 billion. The new facility will be commissioned in the second half of year 200 2. We are going ahead with the registration process and documentation of the vaccine in the international market.''