Abstract

Wockhardt Limited, which was once a well known pharma major, ended up in financial mess after a spree of acquisitions in India and abroad, in large part through leverage. The increased debt burden and losses in complex currency derivatives hedging left the company in precarious situation. Overcoming these challenges in a gloomy economic environment and in a heavily leveraged condition was a challenge to the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Indentify the reasons behind the high growth of Wockhardt
• Analyze the reasons for Wockhardt’s financial troubles
• Analyze the various options available for Wockhardt to overcome the challenges

Keywords

Financial performance, Wockhardt Founder, Wockhardt, Habil Khorakiwala, europe, Wockhardt Ltd., Wockhardt, Growth, FCCB, stock prices, Pharma company, Worli Chemical Works, RR Medi Pharma Ltd., Wallis Laboratories, Merind Ltd., CP Pharmaceuticals, Esparma GmbH, Dumex India Pvt. Ltd., Pinewood Laboratories, Negma Laboratories, Morton Grove Pharmaceuticals, RR Medi Pharma Ltd., Wallis Laboratories, Leverage, Financial Distress, Debt-Equity ratio