Wockhardt denies reports of intentions to sell domestic business

Pharma major Wockhardt has denied reports that the company is set for a major rejig in which it could look to sell its entire domestic business for nearly Rs 2,000 crore. In an interaction with CNBC-TV18, Wockhardt Chairman Habil Khorakiwala said that no such developments are currently taking place. "If something of this sort happens, we will inform the media," he said.

Multiple news reports recently suggested that Cipla or Dr Reddy's could be in talks to acquire Wockhardt's domestic business. The Rs 2,000 crore valuation is 3x the size of the overall domestic business of Rs 670 crore. CNBC-TV18 could not verify those news reports independently.

In 2020, the company signed a deal with Dr Reddy's Laboratories to divest select divisions of its branded generics business for Rs 1,850 crore. It sold a select portfolio of 62 brands in multiple therapy areas.

News reports also indicate that the company's antibiotic study under WCK 5222 was used on a Nepalese woman in Lucknow. A 10-day course given free of cost when all other antibiotics stopped working resulted in the woman being free of bacteria within five days.

The reports further state that Wockhardt has received requests for the drug from other parts of the world and four requests from India.

However, CNBC-TV18 has not verified this report independently.

On the WCK 5222, Khorakiwala said that the clinical trials are currently underway and will end by early 2024, further adding that the company has a licensing opportunity in some countries for this drug.

Work on the WCK 5222 began in 2012 with a phase 1 trial of 200 patients in the US. The USFDA permitted the company to directly conduct phase 3 trials. The trials are currently underway in Europe and will soon begin in the US as well.

Khorakiwala mentioned that the WCK 5222 would be manufactured in the UK.

Wockhardt has repaid most of the debt on their books, according to Khorakiwala. He also mentioned that a small figure of the debt, which is less than Rs 100 crore, would be repaid by the end of the current financial year. "Short-term debts, we will deal with it over a period of time," he said.

In March this year, Wockhardt signed a collaboration with the Serum Institute of India for the UK market, under which Wockhardt will undertake, fill and finish activities of up to 150 million doses of multiple vaccines.

Khorakiwala clarified that the tie-up with Serum is not restricted only to Covid vaccines. "We have identified, along with Serum, six vaccines, which they are already manufacturing in India, and that is where we will be manufacturing for them in the UK," he said. The contract with Serum is for 15 years and will be on a 51-49 profit-sharing basis, along with Wockhardt's manufacturing costs.

Shares of Wockhardt are trading 0.6 percent lower at Rs 234.05.