Wockhardt Limited’s Regulatory Woes: Hard Work Ahead




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case is about Wockhardt Limited, a leading pharmaceutical company in India, and the regulatory hurdles it has been facing since mid-2013. The case describes the growth of the company in detail. It also highlights its financial problems in 2008-09 and the successful financial restructuring of the company.

In mid-2013, the company found itself mired in regulatory problems when the USFDA banned imports form its manufacturing facilities at Waluj, Aurangabad, in Maharashtra, Western India, citing violation of good manufacturing practices. Later, imports from its Chikalthana unit in Aurangabad were also subject to a USFDA ban. These import bans effectively stopped Wockhatdt’s exports to the US and cost the company millions of dollars in sales.

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Issues

The case is structured to achieve the following teaching objectives:

  • Analyze the strategies adopted by Wockhardt to become a global company by using a low cost advantage;
  • Understand the issues and challenges faced by an Indian pharmaceutical company in growing its business in the international market.
  • Understand the importance of operations in sustaining a business strategy.
  • Identify the reasons for the regulatory problems faced by Wockhardt
  • Discuss the various options available for Wockhardt to overcome the challenges.

Contents
Introduction
About Wockhardt
Industry Overview
The Regulatory Issues
Turnaround At Risk?
Hard Work Ahead
Exhibit

Keywords

Globalization; International strategy: Industry analysis; PESTEL; Porter’s diamond; Business-level strategy: Competitive strategy; Cost Leadership; ‘Strategy clock’; Low price strategy; Strategy and Operations; Quality issues; Pharmaceuticals; Turnaround

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