Dr. Habil Khorakiwala founded Wockhardt in 1967. He has gone on to build a multinational enterprise active in the fields of pharmaceuticals, biotechnology and hospitals and created one of India’s leading healthcare businesses. His father Fakhruddin T. Khorakiwala had acquired Worli Chemical Works in 1959. This was incorporated as Wockhardt Pvt. Ltd., in 1973. Wockhardt Ltd. is a pharmaceutical and biotechnology company headquartered in Mumbai, India. The company has manufacturing plants in India, UK, Ireland, France and US, and subsidiaries in US, UK, Ireland and France. Wockhardt acquired many companies include Wallis Laboratory, UK in 1998, Merind, India in 1998, CP Pharmaceuticals, UK in 2003, Espharma GmbH, Germany in 2004, Dumex India in 2006, Pinewood Laboratory, Ireland in 2006 and Negma, France in 2007. Wockhardt Hospitals is a subsidiary of the Wockhardt Group.

Products & services—

It produces formulations, biopharmaceuticals, nutrition products, vaccines and active pharmaceutical ingredients (APIs). Wockhardt is a true Indian Multi-National Company with a multi-ethnic workforce of 7500 Wockhardt Associates from 14 different nationalities globally. It has 4 research centers and 14 manufacturing plants, with businesses ranging from the manufacture and marketing of Pharmaceutical and Bio-pharmaceutical formulations, Active Pharmaceutical Ingredients (APIs) and Vaccines.

Wockhardt has 4 research centres globally with over 550 scientists of which over 100 are doctorates. Wockhardt's 14 manufacturing plants are located in India, UK, Ireland, US, and are compliant to international regulatory standards including US FDA and UK MHRA. These manufacturing plants are multi-technology and can manufacture all the dosage forms including sterile products as well as products with lyophilised dosage forms. There are 87 ANDAs approved in the US and 23 in the EU markets. Wockhardt also have a rich pipeline of ANDAs.

Valuation—

Wockhardt is planning to build a global manufacturing hub in Aurangabad. It has signed a memorandum of understanding with Maharashtra Industrial Development Corporation (MIDC) to establish a special economic zone (SEZ) in Aurangabad. This SEZ will be spread across 107 hectares of land and is likely to generate employment to 2,000 people. The SEZ will house manufacturing facilities for active pharmaceutical ingredients, biopharmaceuticals, research and development center, effluent treatment plant, a corporate office, warehouse and a residential and recreational complex. The company is also planning to start a new facility in UK to expand the manufacturing of Byetta cartridges. Wockhardt is targeting to raise the capacity four times compared to its current capacity. At CMP, stock is trading at 14.6 P/E multiple of its financial year 013 earnings. We recommend investors to buy “Wockhardt Ltd” at every correction with long term investment prospective.