Wockhardt, a Rs.5,600 crore pharma major which is facing quality problem, has received major setback due to quality problems and it has now undertaken steps to overcome problems at Waluj facility near Aurangabad.
Addressing the shareholders of the company at its 14th annual general meeting in Mumbai, Dr Habil Khorakiwala, chairman, said, “The unfortunate observations against one manufacturing facility, have been a complete surprise. Evidently, it is a case of oversight and deviation from set processes at an operative and supervisory level at the facility. Admittedly it is an inexcusable lapse, but have taken swift and definitive action, both corrective and pre-emptive.”
The Wockhardt scrip declined by 3.9 per cent or Rs.18.30 today on Bombay Stock Exchange and closed at Rs.449.55. The scrip touched to its 52-weeks highest level at Rs.2166.05 on March 12, 2013 as against yearly lowest level at Rs.344.15 on August 8.
To overcome quality problem, the company appointed a new, highly experienced, senior professional as its Head of Quality reporting directly to the managing director. Wockhardt is working with several international consultants and advisors to establish processes enabling a robust system of compliance that will meet all regulatory norms and requirements. The company is leveraging technology to lay down a system of checks and balances to ensure that operative personnel strictly follow and maintain established processes and protocols mandated.
Dr Khorakiwala added that the company is deploying enterprise-wide software that will streamline the entire quality and compliance system across all its manufacturing facility and undertaking a comprehensive compliance training programme for all personnel responsible for manufacturing and quality control. He said, “We are going all out to resolve this issue at the earliest.”
The company's net sales for the year 2012-13 increased by 28.9 per cent to Rs.5,609 crore and earned a net profit of Rs.1,594 crore, a strong growth of 365 per cent. Its international business accounted for a share of 83 per cent of total revenues. The US business contributed 52 per cent, European business 24 per cent and domestic business 17 per cent. Its US business increased by 52 per cent during 2012-13.
Khorakiwala pointed out that there are 607 dedicated research scientists and associates across company's three R&D centres in India, US and UK. They focus on generics, new drug delivery systems, new chemical entities, and recombinant biopharmaceuticals.