Refuting the recent media speculation that Wockhardt will book significant losses in the first quarter 2008 financial results because of the fluctuations in the derivatives market, Wockhardt said that it will neither incur any losses arising out of the derivatives-hit scenario in the current quarter nor will there be a situation of such losses to occur subsequently.

Wockhardt has a significant business presence outside India, mainly in Europe and in the US, to the extent of 60 per cent of its annual turnover. In the last one year, there has been considerable currency fluctuation. And in such situations, it is normal practice to protect the company from such currency fluctuations and genuine business related hedging is done on a regular basis. Wockhardt has a highly professional and expert team that undertakes normal business related to hedging for the past few years. In addition, its record of the last few years clearly demonstrates that there have been no losses whatsoever because of business related hedging activities, a company release said.

With regard to the Foreign Currency Convertible Bond (FCCB), Wockhardt had raised FCCB for the potential funding of its acquisitions in Europe and USA. And this funding has been utilised for the said acquisitions that Wockhardt has been undertaking in Europe and USA. The consolidated profits of Wockhardt for the year 2007 are Rs 385.82 crore as against Rs 241.25 crore in 2006, which is a growth of 60 per cent over the previous year.

Recently Morgan Stanley had a detailed discussion with its executive director, Finance.

Wockhardt Ltd is a global pharmaceutical and biotechnology major with an innovative research and development programme. Wockhardt has global footprints including UK, France, Germany, Ireland and USA. Wockhardt employs around 6000 people worldwide belonging to 14 different nationalities.