Thanks for the clarification @Hemanth_Kumar. That’s a good positive to know. Although I am not invested, but it does look like an interesting idea to pursue if we can get some visibility of their roadmap.

194cr of lease liabilities is shown under borrowings. Actual debt is 34 cr long term and 6cr short term debt. So D/E is near 0.3.

I think we need to understand to whom it was given.

If it’s to the employees, I think it’s a reasonable way of motivating them. Many companies have ESOP plans and I believe this specific plan began when Mr. Garg was still running the show.

Or course, any dilution is bad for Shareholders. What matters is what benefit the company gains from giving them out. It could be for retaining good talent, motivating employees or simply thanking them for years of service. If that converts to better work culture/ethic in the long term, that’s a win-win for both employees and shareholders.

I only hope that the new Management is open to discuss these matters in detail. If they’re not, I’d get suspicious for sure.

I fail to understand how the law in India works.

1. Invesco with 18 percent company wasn’t able to do anything against promoters with 4 percent company 2 years back!!

2. The company promoters have a track record of proven frauds!! Not 1 or 2,but many. What is law doing, police? sebi??

3. Promoters get free 1100 crores as non compete fee from Sony?? Lolll. Who suffers? Majority investors (not even minority). They owned 4 percent of company which is worth 600 crores currently, but get 1100 crores free!! How was this even approved??

Wockhardt Bio AG, a subsidiary of Wockhardt Ltd will manufacture WCK 4873 for the Indian market. Jiangxi Jemincare Group Company Ltd, China will develop and commercialize the drug in China, Hong Kong, Macau and Taiwan. In the press release on Aug 26, 2021, the following terms were mentioned:

Jemincare will be responsible for exclusive development and commercialization of the Nafithromycin in the select markets. A joint steering committee is formed to oversee development and regulatory activities. Wockhardt will receive an upfront payment and will be eligible for regulatory-linked milestone payments. Further, Wockhardt would supply the product to Jemincare and will receive royalties on net sales. Wockhardt would transfer the manufacturing technology to Jemincare at mutually agreed time.

As of now, Wockhardt has entered royalty partnership with Jemincare. I will leave this question for others because I do not know the regulatory requirements of China.

Unrelated to your royalty question; but the revenue from sales in India will start after the DGIC approval – expected sometime in the middle of 2024. I also expect them to enter the US market, but I have not been able to find any information regarding NDA submission at the USFDA.

The company is restructuring its US business to shift from in-house manufacturing to contract manufacturing. However, this has not yet started. On the other hand, Wockhardt was itself a contract manufacturer for Covid-19 vaccines in the UK. Of the other segments, I have not been able to find information regarding the Branded Medicines and Diabetics separately. I will again leave that for other researchers.

Sales

EBITDA

Source: Annual Reports, 2021-22 & 2022-23

As far as I know, the company has not disclosed any revenue model for WCK 5222, neither has any partners been announced. Estimates of revenues / royalties vary widely: The floor is ₹0 if the drug is not approved and the ceiling is the total market size. Again, the total market size is debatable: In my opinion, it is around $4b. Moreover, past performance of the company has been erratic, so it is difficult to estimate an upper ceiling for the company.

Disclosure: Invested