In October 2007, Wockhardt announced that they had reached an agreement with Chicago based Morton Grove Pharmaceuticals regarding an acquisition. It was an announcement that got the attention of many stakeholders in the industry, especially when you consider that the company was one of the fastest growing entities in the United States.
The events that followed that agreement were an essential topic of discussion both on and offline. To date, people still talk about that merger when they talk about this industry. It is because it set a precedent for many of the large-money transactions that we have witnessed in the pharmaceutical industry.
What the Acquisition Meant For Morton Grove
For a company with a promising future such as Morton Grove Pharmaceuticals, there would have never been a better time for a purchase than this one. It meant that the company now had more finances to pursue their expansion agenda. It was evident when they went ahead to invest in more areas and grow their portfolio.
For the years that they have been part of Wockhardt, they have enjoyed more flexibility in the way they manufacture and market their products. They have also positioned themselves as an industry leader in this niche.
The Effect on Wockhardt
After reaching an agreement with Morton Grove Pharmaceuticals, Wockhardt released a statement saying that it was a strategic move. For them, the most important thing was to make forays into the US market, and there was no better way of doing it than working with a company that was already established.
It should be remembered that this was the time when most companies were expanding into international markets, and nobody wanted to be left alone. Looking at the years that followed the acquisition, we can fairly say that their strategy paid off.
What Next For Morton Grove?
For Morton Grove Pharmaceuticals, an acquisition only means one thing; the best days are still ahead. Although the company has been becoming better every year since 2003, analysts agree that it still has room to grow. It is still one of the best liquid generic and specialty dermatology companies in the United States.
However, it is necessary to point out that the number of their products has grown since that acquisition. In addition to that, they have reorganized their staff and made several changes to their working style, an indication that they are still positioning themselves for better markets.
One thing that can be concluded about the acquisition of Morton Grove pharmaceuticals is that it set the stage for a revolution in the industry. The period between 2003 and now has witnessed countless mergers, most of which have been conducted the same way. To make things even better, the companies that helped to broker the deal have gone ahead to spearhead many more.
With the deal having been a success, it is clear that it gave confidence to other companies that were afraid of expanding their portfolio through such acquisitions and mergers. What is left to be seen is how these events will drive the two companies into the future of the pharmaceutical industry.