The management team presented the company’s status and prospects through visual presentations. While the presentations covered the every aspect of company’s operations right from business model to growth oriented future plans, latest acquisitions of DOCL and PPIL remained much talked about topic among analysts.

Company divides its business in to three parts; namely, Bulk business, domestic formulations and formulations abroad.

While bulk business is export oriented and focused on regulated markets, formulations overseas eying on European generics market. Focus of management towards domestic formulations includes strong brand building.

Company’s profile

The company is an existing profit making company listed on BSE with current market capitalization of Rs 150 crore.

The company for nine months period ended December 2005, has provisional income of Rs 72.50 crore with provisional PAT of Rs 8.6 crore.

Company is having 3 API facilities with two US FDA approved for multi products in Maharashtra and Aandhra Pradesh.

Company has strong clients base in around 50 countries. It includes, Apotex (Canada), Torr Pharma (USA), Mylan (USA) etc. Most of these clients are sourcing 100% from the Wanbury.

Strong product base

The company is having around 14 products in its portfolio, of which around 8 products are sold in US and Europe

• Metformin

The company is largest manufacture of Metformin in the world. Metformin is a diabetes management product with global API sales of Rs over 15000 tonnes.

This product is globally growing at the rate of 20% p. a. Company produces around 3600 tonnes of Metformin and caters around 14% of world demand.

Apart from Metformin, company has strong pipeline of existing and new products selected for sale in regulated market. These products include: Glucosamine, Mefenamic acid, Gabapentene, Tramadol, Amitryiptyline, Promethazine, Sertraline, Paroxetine Hemihydrate, Carvedilol, Desloratidine, Lossartan Potassium, Salsalate, Ibuprofen etc.

Company exports to over 50 countries addressing needs of over 200 customers across the glob. Of the total exports around 65% is sold in higher margin and more sustainable regulated markets of North America and Europe. However, there is no dependence on single customer.

Recent acquisitions

The company is in advance stages of merging two companies in the API space, which would manifold increase, the capacity of the company and strengthen presence in the APIs. These acquisitions are aimed at increasing sales and widening of the product portfolio n the US market and for foraying in to contract research manufacturing services.

• Acquisition of Doctor Organic Chemicals (DOCL): Wanbury and its associates have acquired 51% stake in Andra Pradesh based DOCL. This company has multi product manufacturing facility, which is US FDA approved. This company manufactures Gabapentene intermediate, Ibuprofen, Mefenamic acid and Glucosamine. The company has undertaken major expansion at this site to produce more products. The plant is spread in the area of 18 acres and this facility provides large scope for contract manufacturing services to global pharma majors and other existing clients.
• Acquisitions of Pharmaceutical Products of India Ltd: This Company has facility at Tarapur and another large partly finished facility at Patalganga. The Patalganga plant has been built for regulated market. The completion of Patalganga facility will add another large USFDA approvable facility to Wanbury and a number of pipeline products and CRAMS could be offered from this facility.

Acquisition history

The company has successful track records of acquisitions in the past both APIs and Formulations. The facility at Patalganga was added though an acquisition of assets from Brij Chemicals Pvt Ltd, which had a chemical-plants then existing. This plant has since been converted in to USFDA approved API facility.

Wanbury has been formed with the merger of Pearl Organics and Wander Pvt Itd. Wander was acquired from Sandoz.

On a growth path in formulations

The company has strong presence in Pediatricians, Gynecologists, Orthopedics and General practitioners. The company has recently introduced new products in the Pediatric and Gyneac segments and has a very good response. The company is also in a process of acquiring domestic ethnic brands.

The company is exploring the possibility of acquiring a profitable European generic business, which would allow the company to enter in to regulated European markets and diversify its revenue base. This market is set to expand in a large way with a number of regulated markets recognizing and promoting generics.

Outlook

The company has envisaged a vision of fulfilling the Rs 1000 crore Market Capitalization by the year 2009 and to fulfill this objective it has appointed the Cedar group for inducting the Balanced Scoreboard mechanism for process management to achieve the vision.