The Hindu Business Line : Wockhardt to project `single entity worldwide'

PHARMACEUTICAL major Wockhardt Ltd has moved into a "global orbit" this year and is looking to project itself "as one single entity worldwide," according to Mr Habil Khorakiwala, Chairman of the company.

Consolidated sales crossed the Rs 1,000-crore milestone and profit before tax clocked Rs 200 crore on a moving annual basis. But Wockhardt's robust global activity was reflected in the fact that international business alone accounts for 61 per cent of consolidated sales this quarter, the Chairman told shareholders at the AGM here on Thursday.

On projecting the Wockhardt brand worldwide, Mr Khorakiwala said that Wallis Laboratory and CP Pharmaceuticals had been consolidated into a single entity — Wockhardt UK Ltd.

The UK-based CP Pharmaceuticals was acquired by Wockhardt in July 2003. The company has posted a 22 per cent growth in sales during the quarter, a company communiqué said.

Similarly, the relocation of professionals from India to the US market was also part of the renewed thrust being given to exports, the Chairman said.

Reviewing the year's operations, Mr Khorakiwala said, "For the first time since 1995, the company gave a bonus share this year, in the ratio 1:2 (one new share for two existing shares). This along with the stock split from Rs 10 to Rs 5 was expected to improve the liquidity and credibility of Wockhardt shares."

Wockhardt posted a net profit of Rs 44 crore for the first quarter ended March 31, 2004, recording a 441 per cent growth over the corresponding period in 2003. Sales at Rs 288 crore posted a 78 per cent increase over the first quarter of 2003.

Operating margins doubled to 20 per cent during the first quarter. Operating profit at Rs 58 crore saw a 266 per cent increase over the corresponding quarter of 2003, a company communiqué said.

Wockhardt has commissioned its Rs 200-crore Biotech Park at Aurangabad and the company's biopharmaceuticals have been registered in six countries and exports have started, he added.

The company's domestic business recorded a 38 per cent growth this quarter, over the corresponding period last year. The growth was attributed to the "strategic thrust" on power brands and the diabetology and nephrology portfolios.

"Diabetology portfolio grew by 154 per cent and nephrology product Wepox (recombinant erythropoietin) posted a 70 per cent sales growth over the first quarter of 2003. The neuro-psychiatry portfolio posted a 40 per cent sales growth," the company said.

Research and development spends also increased to Rs 12.5 crore during the last quarter compared to Rs 10.6 crore in the corresponding period in the previous year.