Drug-maker Wockhardt has significantly reduced the number of people working at its Negma operations in France, and the plant has been divested, Wockhardt Chairman, Dr Habil Khorakiwala, said.
The Negma business has been restructured and the company has reduced its man-power from 470 to 75, Dr Khorakiwala said, responding to shareholder queries on Monday. The Negma plant has been “divested” as part of the “safeguard proceedings” and products earlier made by the company would now be sourced through contract manufacturing, he told Business Line , without giving details.
The debt-saddled company had said last year that Wockhardt France and some of its subsidiaries had been placed under “safeguard proceedings”, as an initiative of the company. “Wockhardt France is solvent and the safeguard helps the company reorganise its business to be viable,” it had added. Wockhardt France (Holdings) SAS is a subsidiary of Wockhardt EU Operations (Swiss) AG.
Paris-based Negma was acquired by Wockhardt for $265 million in 2007. It was the last of five acquisitions in Europe, over a 10-year period.
FCCB
Restrained by litigation that Wockhardt finds itself in, after it defaulted on the repayment of its $110-million foreign currency convertible bonds (FCCB), in 2009 – Dr Khorakiwala said, the present liability is less than $100 million.
In fact, last month's Rs 1,600-crore deal between Wockhardt and Danone to sell its nutrition business to the multinational company still awaits the seal of approval from the Bombay High Court. Wockhardt's debt stands at Rs 3,200 crore, as on June 2011.
Bio-similars
While domestic insulin-makers have seen different deals — such as, the Biocon-Pfizer sourcing deal and the Lupin-Eli Lilly marketing deal – Dr Khorakiwala said, they would take a “different strategy” with Wockhardt's insulin products. “In markets where we have a presence, we will market ourselves,” he said, adding that they were open to partners in markets where they do not have a presence.
Wockhardt has over 50 products in the United States and Europe expecting approvals in 18 months, he said. Looking at other emerging markets, the company is also interested in Japan, he indicated.
Wockhardt shares closed down over two percent on the Bombay Stock Exchange, at Rs 384 on Monday.