Wockhardt Limited Investor Call Summary (February 21, 2023)
Company Overview
• Date of Call: February 21, 2023
• Participants: Dr. Habil Khorakiwala (Chairman), Dr. Murtaza Khorakiwala (Managing Director)
• Focus: Upcoming changes and turnaround in the next 20-24 months
Key Highlights
• Organizational Transformation:
• 75% of business from international markets
• Restructuring US operations to reduce losses by $12 million
• Agreement with Serum Institute for UK vaccine production (150 million doses/year for 15 years)
• Product Portfolio:
• Strong antibiotic portfolio with six QIDP grants from US FDA
• Successful licensing of a molecule for China
• Progress on flagship antibiotic WCK 5222, with compassionate use cases
Financial Performance
• Debt and Cash Flow:
• Significant reduction in long-term debt
• 20% increase in sales and positive EBITDA in recent quarters
• Growth in Key Markets:
• India business growth, especially in diabetes products (20% growth in diabetes segment)
• Emerging markets business improved to Rs. 148 Cr in Q3
Strategic Growth Pillars
• Core pharma business across regions
• Vaccine collaborations
• Comprehensive diabetes biological portfolio
• Commitment to new drug discovery
Future Plans
• Aim for profitability and positive cash flow within two years
• Significant product launches planned for 2024 and 2025 (glargine and Aspart approvals)
Clinical Trials and R&D
• WCK 5222 clinical trial phase three initiated, requiring $30 million funding
• Ongoing patient enrollment in Europe, with plans to expand to India, US, and China
• R&D budget maintained at 8-9% of revenue, focusing on biologicals and drug discovery
Market Positioning
• Limited competition in diabetes injectable market
• Strong market potential for diabetes biosimilars
• WCK 5222 addresses highly resistant infections with no comparable drugs available
Strategic Partnerships
• Confirmed partnership with Serum for vaccine manufacturing
• Anticipated higher margins compared to previous contracts
• Emrok generated over Rs. 30 Cr in revenue since launch
Conclusion
• Optimism about future opportunities in biologics and vaccine manufacturing
• Ongoing discussions for vaccine production with a large company
• Commitment to delivering performance over the next 12-24 months