Wockhardt Limited notched up impressive growth of 441 per cent in net profits during the first quarter ended March 2004 and its net profit touched to Rs 44 crore. Similarly, its operating profit registered a growth of 266 per cent at Rs 58 crore. The company’s sales increased sharply to 288 crore, representing a growth of 78 per cent over the corresponding period of last year.
The company’s consolidated sales have crossed the Rs 1000-crore mark and profit before tax has crossed the Rs 200-crore mark on a moving annual basis. Habil Khorakiwala, chairman said “International business, which posted a 118 per cent growth, continues to be our major growth engine. Also, our biotechnology portfolio sales increased by 67 per cent during the quarter ended March 2004.”
The company’s International business grew by 118 per cent lifting the contribution of international business to 61 per cent of Wockhardt's consolidated sales. The growth was driven by more than 200 per cent increase in formulation business. European formulation sales grew by 308 per cent, US by 60 per cent and rest of the world by 28 per cent during the quarter. Exports out of India grew by 32 per cent.
Its sales of Vitamin B12 increased by 74 per cent. The generics (ANDA) business in the US posted a 37 per cent growth during the quarter ended March 2004.
CP Pharmaceuticals of UK, which Wockhardt acquired last July, posted a 22 per cent sales growth during the quarter over the first quarter of 2003. Operating profit as well as margins have improved after the company came under Wockhardt management CP Pharmaceuticals has now been integrated into Wockhardt's manufacturing, supply chain and IT systems. Wockhardt has consolidated the businesses of Wallis Laboratory and CP Pharmaceuticals into a new entity christened Wockhardt UK Ltd.
Wockhardt has commissioned its Rs. 200-crore Biotech Park at Aurangabad. Its biopharmaceuticals have been registered in six countries and exports have started.
Wockhardt's domestic business returned to the growth path during the quarter, recording a 38 per cent growth over the first quarter of 2003.A strategic thrust on power brands and the diabetology and nephrology portfolios has put the domestic business on the growth track. The diabetology portfolio grew by 154 per cent. 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.
Wockhardt invested Rs 12.5 crores in R&D during the quarter compared to Rs. 10.6 crores in the first quarter of 2003. Three ANDAs were filed during the quarter as against six filed during the 12 months of 2003. Wockhardt's new chemical entities continued to make progress and are currently in various stages of clinical and pre-clinical trials.
The company has three biotech products in the market; Biovac B (hepatitis B vaccine), Wepox (recombinant erythropoietin) and Wosulin (recombinant insulin).