Wockhardt seeks to sell animal healthcare biz

Wockhardt Ltd, India’s sixth-largest drug maker, currently negotiating its debt load with banks,yesterday sought shareholders’ approval to sell its animal healthcare business for an anticipated Rs 150 crore.

The business had net sales of Rs 77 crore and earnings before interest, depreciation, tax and amortisation of Rs 18 crore for the year ended December 31, 2008. Wockhardt’s consolidated net sales for the period were Rs 3,600 crore.

The Mumbai-based firm is planning to convert its biotechnology products division into a separate company and bring in a global pharmaceutical major as a strategic investor. The process is expected to take 12 to 18 months.

 

Wockhardt Chairman Habil Khorakiwala had earlier told Business Standard that the company was looking at a strategic investor among the top 10 multinational companies having the muscle to take their products to global markets. The company was looking at the option of licensing the biotech drugs under development to a partner.

Wockhardt is saddled with a debt burden of over Rs 3,400 crore and is going through corporate debt restructuring (CDR). The CDR process, which may take three more months to finalise, will help the company realign its debt to a repayment period of two-five years.

Wockhardt has one of the largest number of off-patent biotech drugs under development in India. The company has invested Rs 300-500 crore at its Biotech Research Park at Aurangabad.

The complex has the capacity to meet 10-15 per cent of the global demand, anticipating the future demand for off-patent biotech drugs. “Except insulin, which has already gone off-patent, we have the first-mover advantage in all others,” said Khorakiwala.