- Conference takeaways — Wockhardt spoke with investors at the Citi India Investor Conference 2008. Here are some of the highlights of that presentation
- Morton Grove on course — The restructuring effort of Morton grove is on course and it has turned in an EBITDA of US$1-2m for 4Q07 vs. EBITDA losses in
- 2007. The company also indicated that it is in the process of addressing the issue of the warning letter on Lindane.
- US generics — Wockhardt is expecting FDA approval for a nasal product with limited generic competition (3-4 players). Overall pipeline for the US remains strong with more than 40 ANDAs pending at the FDA. About 30% of these are “difficult to make” or niche generics.
- Bio-generic — Wockhardt IND for insulin was filed in Feb 08 for the EU and has got approval in the US. For the rest of the world market, Wockhardt will be a key player in the bio generic opportunity with about 75 registrations.
- NCE R&D — Wockhardt is contemplating a de-merger of it NCE R&D effort. Wockhardt may spend cRs800m on NCE R&D in 2008 (vs. Rs600m in 2007). It expects NCE R&D to jump significantly in 2009 as one of its lead molecule WCK 771 progresses further in the clinics. More clarity over the structure of the demerger is expected in 2H CY08.
- Guidance — It re-iterated its revenue growth guidance of 32-35% in 08 and indicated it was on target for a US$1bn revenue and >15% net margin by 09.
Price (11 Mar 08) Rs303.95
Target price Rs550.00
Expected share price return 81.0%
Expected dividend yield 2.3%
Expected total return 83.3%
Market Cap Rs33,263M
US$823M
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