Summary
This news comes as a great shocker!!!
Wockhardt till some time back had full intentions of making hospitals its core business & pharma its secondary business.
Their pharma business has seen consistent decline over the years with no sign of revival.
The financial situation at Wockhardt has been much talked & written about and must have forced them to change their mind.
If the sale goes through it will cure all of Wockhardt current alignments in one Dose1
Analysis
Hospitals is the next growth drives in Indian healthcare industry.
Pharma Business has become a "Dog eat Dog" business with very little room to monuver.
Every body is copying each other and depending only on volumes.
Hospitals would have taken Wockhardt to great heights & could be a strategic blunder to offload or get out now!!!
With only 10 hospitals if Wockhardt can demand $ 20 Billion, imagine with a Pan India network what could be the valuation!!!
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
