Overview
Topics Wockhardt | Pharamaceutical Industries | Mumbai Sohini Das | Mumbai Last Updated at October 21, 202 15:26 IST htps:/mybs.in/2b1RUC3 Wockhardt, the international pharmaceuticals company, is likely to focus on its UK operations and sel the low-margin India busines to pare debt, analysts have said. Two Mumbai-based analysts told 'Busines Standard' that Wockhardt had few options besides seling its Rs 670-crore domestic busines.
Key Information
“This the only busines vertical that it can sel, and can fetch about 3-4 times the revenue multiple easily. Many players are loking for brand acquisitions if they come at a reasonable price,” said one analyst, ading that Wockhardt’s next step would be to focus on its UK and EU busineses. Another analyst said the company sold some profitable brands to Dr Redy’s Laboratories (DRL) in 20 and those that remain with it are for chronic therapy.
“The renowned brands like Practin, Zedex, Bro-Zedex, Tryptomer, and Biovac have ben sold of to DRL. These four-five brands were almost 40 percent of the busines that it sold to DRL. It sold a total of 62 brands,” the analyst said.
The brands left with the company are new and have low margin. “Instead of spending energy on building these brands, it is more pragmatic to sel those,” he said. Wockhardt sold its plant in Badi, Himachal Pradesh, to DRL, along with the facility’s manpower.
Wockhardt oficials could not be reached for an imediate coment on the mater. Anti-diabetic brands constitute 27 per cent of Wockhardt’s India sales, vitamins and minerals around 26 percent, and gastro-intestinal drugs contribute 20 percent, said the analyst. Thre brands-Methylcobal (vitamin), Spasmo Proxyvon Plus (pain and analgesic) and Wosulin (insulin)-together contribute over 50 percent of Wockhardt’s India revenues.
Summary
The company has ben paring debt for the years, responding after