I think Wockhardt is the classic case of how Nepotism can destroy a company. Mr. Murtaza Khorakiwala does not look promising to me. His addresses and TV Interviews does not show him as if he has fire under his belly or have vision. After so many 483s and import alerts, even a Pan Wala would have learnt and ensured that at least those plants which were not under ban follow the cGMP Practices. But now it seems Wockhardt has inefficient management team. For Shendra, every time they were saying we are waiting for USFDA. I think management needs to take some strong steps fire some people and send a message and develop a good culture.
Here is the summary of my observations:-
Pros
84 ANDAs pending with USFDA
Incurred R&D expenditure of 2000 Crores in last four Years
Three key plants have got EIR so 483s closed
Except US Business they are doing well
Most of the molecules are First to File or complex
Cons
Nepotism and a MD who lacks vision (Not sure)
Lack of Transparency
Management keeps lying, I have doubts whether they have seriously received EIRs or are just bluffing
Focus not on meeting quality standards first
Annual Report looks like more of copy paste done
Repeatably cGMP problems
Now the only good thing is at Sales/Market Cap it looks cheap. The valuation gap is there but one has to take a decision of basis of available opportunities.
Disclosure invested