New Delhi: According to the sources, pharma major Wockhardt Ltd has entered the final stages of buying US drug maker Morton Grove Pharmaceuticals Inc., which makes prescription liquid pharmaceutical products.

A related source told that Wockhardt is projected to declare the transaction shortly.

But the Mumbai-based pharma company declined to comment on the recent deal. “We do not respond to any speculations or rumours,” a company spokesperson replied.

The sources also said that the deal price is in the range of $50 million to $70 million.

Wockhardt has challenging plans for promoting its income from the US market. Presently, the US makes about 9% of the company’s revenue whereas Europe adds 52%.

Habil Khorakiwala, Wockhardt chairman said, “As per our growth strategy in the US, we would increase the revenue from there three to four times by 2009 through the organic route alone. We are also looking at acquisitions to expedite our growth there.”

Morton Grove, the Illinois-based company that hires around 300 people, fabricates and markets more than 50 products and is a renowned player in the liquid generic pharmaceuticals market. It has around 11 generic drug applications under regulatory review currently. The company has more than 30 oral liquid, topical liquid and prescription nasal spray products in the line, which could enter the market in the coming years as their inventor’s patents terminate.

Ranjit Kapadia, Prabhudas Liladhar research head (private client group) said, “The deal makes sense for the company as it is always better to manufacture liquid products in the region where they are sold. Water constitutes over 90% of liquid pharma products and transportation cost could well offset the cost advantage of making it in India. Besides, having a line of approved products with a distribution channel is very advantageous.”

Wockhardt markets 21 products comprising six injectables in the United States under its own brand. The company is the leading Indian drug manufacturer in the European market with 1,500 employees and more than 130 products. Its earnings from the US stood at Rs 100 crore for the first half of the existing fiscal.