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Last Updated : Jan 28, 2020 04:00 PM IST | Source: CNBC-TV18

Looking to raise equity, cash via restructuring, says Wockhardt CEO

On the question of a timeline for the restructuring, Khoarkiwala said: “It would be rather soon in next month or so.”

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Cipla and Asian buyout fund PAG are looking to acquire a big chunk of pharmaceutical major Wockhardt's domestic formulation business, reports Moneycontrol's Ashwin Mohan.

Habil F Khorakiwala, founder, Chairman and Group CEO of Wockhardt, told CNBC-TV18: “I would not like to comment on the media speculation but the fact is that we are looking to raise some equity and cash through some kind of restructuring of the organisation.”

On the question of a timeline for the restructuring, Khoarkiwala said: “It would be rather soon in next month or so.”

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He revealed that sales are picking up in comparison to the previous quarter. “This quarter our sales are up compared to the previous quarter by about 9-10 percent. Secondly, we have been managing our expenses over the past 9-12 months and that has also shown a significant reduction in our cost of operation. That is how we have become fit and trim and that is something which would be very sustainable. Our margins for the quarter is among the highest we had in recent times at 17.7 percent as a result of our product mix primarily. Last quarter it was 12.8 percent and last year the same quarter it was 9.4 percent. So there is a very significant increase in our EBITDA.

“We want to do this restructuring once so that we are comfortable for the next few years to build our business on one hand and invest in research what is necessary."

He also divulged details about Wockhardt's Waluj plant. “We have completed most of the remediation measures and we are in communication with USFDA (the US Food and Drug Administration) and there are certain additional information USFDA is requiring which we are providing and we hope that during the coming financial year, there will be an inspection early enough and we hope that we should be back on track as far as USFDA is concerned and US business is concerned.”

On India business, he said: “India business has three components, one is our branded business which is not down very significantly — it is down by less than a single digit. The generic business that we had, more or less we have discontinued that and that is also showing a decline. The third element was some Active Pharmaceutical Ingredient (API) business domestically is down but internationally it is up.

“Globally our focus is on three-four big areas. One is the pharma business which is very important worldwide including India. Second in terms of therapy area antibiotics since we have the research programme with the new chemical entity (NCE). Third is biosimilars especially the insulin Glargine and other analogues are important because USFDA has come out with new guidelines a month back and we are seriously considering to enter the US market with our biosimilars. Our basic strategy is that we would be marketing ourselves in the USA and in India and we would be looking for partners in the rest of the world. Our strategy is to do a global clinical trial including US,  Europe and China. Once we get the approvals in various markets, we will be looking for marketing and distribution partners worldwide,” he added.

 

Source: CNBC-TV18

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First Published on Jan 28, 2020 03:19 pm

tags #Wockhardt

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