Wockhardt moves to cure itself of FDA woes
NEW DELHI: Hit by the recent US ban on its two plants, drug major Wockhardt plans to shift the company’s focus to research and development (R&D) instead of only manufacturing drugs.
The company will spend ` 500 crore on R&D this year against ` 220 crore two year back.
“It is research that will define Wockhardt in the next 10- 12 years,” Habil Khorakiwala, chairman, Wockhardt, told HT. “This year we would be spending 9% of our turnover on R&D against the current 4-5%.”
The company files about 150 patents each year and is currently researching on pharmaceutical technologies, bio-similars, bio- logics and drug discoveries.
The US FDA recently banned import from two Wockhardt plants, in Waluj and Chikalthana, adding to its financial woes. The FDA had imposed an “import alert” on the two units after its inspectors found violations related to hygeine and quality.
The company at the time of issuance of alert said it was expecting a loss of up to $100 million (`620 crore) in revenue in 2013-14.
Revenues stood at ` 5,610 crore in 2012-13. It fell 14% to ` 1,237 crore during October-December against ` 1,435 crore a year ago.
“This year our profitability will be low and it is certain that we have to overcome the FDArelated challenges to get back to normalcy,” Khorakiwala said.