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
| Segment | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|
| Non-vaccines | ₹2750 | ₹2727 | ₹2708 | ₹2844 |
| UK Vaccines | ₹23 | ₹523 | – | – |
EBITDA
| Segment | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|
| Non-vaccines | ₹208 | (₹39) | (₹47) | ₹245 |
| UK Vaccines | ₹15 | ₹357 | – | – |
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
| Subscribe To Our Free Newsletter |
