Wockhardt announces first quarter results of 2004
Net profit up 441% at Rs. 44 crores
Sales up 78% at Rs. 288 crores

Mumbai, April 22, 2004

Pharmaceutical major Wockhardt Limited today announced its unaudited consolidated financial results for the first quarter ending March 31, 2004.

Net profit at Rs. 44 crores recorded a 441% improvement over the corresponding period of 2003. Sales at Rs. 288 crores posted a 78% increase over the first quarter of 2003. Operating margins doubled to 20% during the first quarter. Operating profit at Rs. 58 crores saw a 266% increase over the corresponding quarter of 2003.

“Wockhardt’s consolidated sales has crossed the Rs. 1,000-crore mark and profit before tax has crossed the Rs. 200-crore mark on a moving annual basis,” Wockhardt chairman Mr. Habil Khorakiwala said. “International business, which posted a 118% growth, continues to be our major growth engine. Also, our biotechnology portfolio sales increased by 67% during the quarter,” he said.

International Business
International business grew by 118% during the quarter, lifting the contribution of international business to 61% of Wockhardt’s consolidated sales. The growth was driven by more than 200% increase in formulation business. European formulation sales grew by 308%, US by 60% and rest of the world by 28% during the quarter. Exports out of India grew by 32%. Sales of Vitamin B12, in which Wockhardt is the world’s second largest player, posted a 74% growth.

The generics (ANDA) business in the US posted a 37% growth during the quarter.

Mr. Arthur Maher, a marketing professional with over 20 years of experience in the US generics business, has been appointed as President, Wockhardt USA Inc., to provide a new thrust to US business. Wockhardt’s President (Corporate Scientific Affairs) and a senior vice president (Intellectual Property) have relocated to the US.

CP Pharmaceuticals of UK, which Wockhardt acquired last July, posted a 22% 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. Wockhardt’s biopharmaceuticals have been registered in six countries and exports have started.

Indian Business
Wockhardt’s domestic business returned to the growth path during the quarter, recording a 38% 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%. Nephrology product Wepox (recombinant erythropoietin) posted a 70% sales growth over the first quarter of 2003. The neuro-psychiatry portfolio posted a 40% sales growth.

Research & Development
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.

Wockhardt Limited is a Rs. 1,000-crore, research and technology-based pharmaceutical company and a front-runner in biotechnology. Wockhardt has an active multi-disciplinary R&D programme employing over 350 scientists. It has three successful biotechnology products in the market - Biovac B (Hepatitis B vaccine), Wepox (recombinant erythropoietin) and Wosulin (recombinant insulin).

View Consolidated Unaudited Financial Results for the Quarter ended 31st March, 2004