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Wockhardt Ltd.

BSE: 532300 Sector: Health care
NSE: WOCKPHARMA ISIN Code: INE049B01025
BSE 15:24 | 22 Sep 280.80 -10.80
(-3.70%)
OPEN

290.15

HIGH

293.05

LOW

277.20

NSE 15:19 | 22 Sep 280.40 -11.15
(-3.82%)
OPEN

293.75

HIGH

293.75

LOW

277.15

OPEN 290.15
PREVIOUS CLOSE 291.60
VOLUME 39307
52-Week high 411.60
52-Week low 147.20
P/E
Mkt Cap.(Rs cr) 3,110
Buy Price 280.20
Buy Qty 4.00
Sell Price 280.80
Sell Qty 74.00
OPEN 290.15
CLOSE 291.60
VOLUME 39307
52-Week high 411.60
52-Week low 147.20
P/E
Mkt Cap.(Rs cr) 3,110
Buy Price 280.20
Buy Qty 4.00
Sell Price 280.80
Sell Qty 74.00

Wockhardt Ltd. (WOCKPHARMA) - Chairman Speech

Company chairman speech

HOPE-STIRRING PERFORMANCE

I am pleased to announce that our performance has been improving yearafter year. In the financial year under review FY 2019-20 our consolidated revenuesstood at Rs.3325 crore as compared to Rs.4158 crore in FY 2018-19 and our Profit AfterTax (PAT) stood at Rs.(43) crore as compared to Rs.(217) crore in the previous year. Thisyear our EBITDA (Operating Profit) improved by approximately 81% to Rs.245 crore asagainst a corresponding amount of Rs.135 crore in FY 2018-19. For the first time in 3years our Q4 results posted a Profit After Tax (PAT) of Rs.69 crore as against a loss ofRs.14 crore in the corresponding period in FY 2018-19. As on March 31 2020 our Net Debtstood at Rs.2945 crore as compared to Rs.2926 crore as on March 31 2019. Currently NetDebt to Equity Ratio is 0.96 as compared to 0.97 as on March 31 2019. The above statedfigures are inclusive of continuing and discontinued operations of ConsolidatedFinancials.

In FY 2019-20 our international business contributed 73% of totalrevenues with the EU US and Emerging Markets businesses accounting for 35% 22% and 16%of total revenues respectively. Our India business accounted for 27% of total sales.

On the compliance front I am pleased to report significant progress.During the year we received regulatory approvals from authorities like US FDA for ourClinical division; TMMDA-MOH (Turkey) PICs Certification EAC-Uganda for Biotech API andformulation; ANSM (France) PMDA (Japan) approvals for our Ankleshwar facility along withState FDA approvals for all our sites. We expect to shape up and achieve full regulatorycompliance at the earliest.

In summation of our performance in the year under review the increasein operating Profit reduced losses lowered debt and other positive developments like astrategic divestment various approvals for our NCEs new patents granted and regulatoryapprovals for various manufacturing facilities are ample reasons to be hopeful about thefuture.

HOPE-KINDLING DIVESTMENT

In Q4 of FY 2019-20 as part of a strategic initiative we decided todivest a part of our domestic branded business to Dr. Reddy's Laboratories (DRL)comprising of 62 products and related business assets and liabilities includingmanufacturing facility at Baddi Himachal Pradesh for a consideration of Rs.1850 crore(approximately USD 260 Million). We will continue to own all our international operationsall other manufacturing facilities and R&D centres here and abroad as well as asignificant part of the domestic branded business constituting chronic and specialityportfolios.

This strategic divestment will help us to shift from acute therapeuticareas to more chronic segments like diabetes and CNS (Central Nervous System) as well asto focus on our niche antibiotic portfolio of NCEs. The sale will also ensure adequateliquidity to aim for robust growth in international operations and investments inBiosimilars for the US market; augment remaining significant domestic branded business andre-focus on the chronic segment with differentiated product portfolio; continue ongoingR&D activities; complete clinical trials of our NCEs with QIDP status from US FDA; andstrengthen the balance sheet.

Reason enough to hope for a resurgent performance in the coming years.

HOPE-INSPIRING R&D

I can never tire of reiterating the critical role that our R&Defforts play in our emergence as a global pharmaceutical and biotech company. I am happyto announce that our R&D efforts have led to some spectacular achievements in the_scal year under review inspiring hope amongst all stakeholders across the world.

At the very beginning of FY 2019-20 we received approval from US FDAfor an ANDA (Abbreviated New Drug Application) for 50 mg injection of Decitabine (ageneric version of Dacogen) the third US FDA approval for our growing portfolio ofoncology drugs. Decitabine is used to treat Myelodysplastic syndromes (MDS) a group ofcancers in which immature blood cells in the bone marrow do not mature and therefore donot become healthy blood cells.

During the year Indian drug regulator DCGI had approved two newantibiotics developed by Wockhardt EMROK (WCK 771 IV) and EMROK O (WCK 2349 Oral)for acute bacterial skin and skin structure infections including diabetic foot infectionsand concurrent bacteraemia based on the successful outcome of Phase 3 study involving 500patients recruited in 40 centres across India. We are now the first Indian Company toachieve approval for New Discovered Antibiotics.

Towards the end of FY 2019-20 we received Quali_ed Infectious DiseaseProduct (QIDP) status from US FDA for WCK 6777 a first ever once-a-day -lactamenhancer-class antibiotic. Based on our other NCE Zidebactam WCK 6777 for injection isindicated for treatment of complicated Urinary Tract Infections (cUTI) and complicatedIntra-Abdominal Infections (cIAI).

It is a matter of great pride that we are now the only company in theworld to hold QIDP status for six antibiotics three of which target Gram Negativepathogens while the other three target Gram Positive diffcult-to-treat‘Superbugs'.

These achievements validate and justify our consistently highinvestments in R&D year after year as a percentage of total sales. In FY 2019-20 ourR&D spends including capital expenditure amounted to 11% of sales at Rs.354 crore.

HOPE-INSTILLING CSR

We believe that hope is much more infectious than any disease and allour endeavours under the aegis of Corporate Social Responsibility (CSR) are aimed atspreading hope and cheer amongst the underprivileged sections of society. Towards thisend Wockhardt Foundation in tandem with Wockhardt Hospitals and many other corporatepartners implements several social programmes like providing mobile medical services toremote rural areas toy libraries skill development e-learning potable watersanitation etc. I n FY 2019-20 our CSR activities touched millions of lives acrossvarious programmes.

When the COVID-19 pandemic forced a lockdown leading to severedisruption Wockhardt Foundation supported by several corporate collaborators swung intoaction and began the implementation of ANAAJ+. It is a programme to support familiesliving in Mumbai's slums with monthly essentials like grains pulses edible oilsoaps etc. The response has been overwhelming with several corporate organisationsstudents and other individuals pledging support as ‘Corona Warriors'. This‘Fight Corona' initiative has touched over 4000 families and counting. It isthis outpouring of help and support that holds out tremendous hope for humanity and itsability to overcome challenges in times of crisis.

In conclusion I will reiterate the words of Martin Luther King Jr. whosaid "We must accept _nite disappointment but never lose in_nite hope." Thereis enough reason to hope for the better and that is backed by a focused strategy and aplan of action.

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