Wockhardt to go for US listing
Plans new European acquisitions of US$100 million
Second quarter Net up 43% at Rs. 50 crores

Wrexham, UK, July 26, 2004

The board of Indian pharmaceutical major Wockhardt Limited today approved a proposal to seek a listing of its securities in the US. The board also gave an in-principle approval to the company to acquire pharmaceutical companies and businesses in Europe to the tune of US$100 million.

“Wockhardt is fully committed to expand its business in the European Union through internal growth as well as acquisitions,” Wockhardt Chairman Mr. Habil Khorakiwala said. “The board’s approval to invest US$100 million is a major step.”

The European Union has emerged as Wockhardt’s largest market. The company established a US subsidiary, Wockhardt USA Inc., earlier this year to spearhead its push into the US generics market.

The two resolutions were approved at a board meeting at Wockhardt UK Ltd. headquarters in Wrexham, UK. It also took on board unaudited results for the quarter and half year ended June 30, 2004.

Wockhardt posted a consolidated net profit of Rs. 50 crores for the second quarter ended 30 June 2004, recording a 43% increase over the corresponding period in 2003. Consolidated revenue for the quarter posted a 37% growth at Rs. 289 crores.
Profit after tax, as a percentage of sales, improved to 17.3% during the quarter compared to 16.6% in the second quarter of 2003. Operating margins improved by 350 basis points to 24%.

“Our European business is poised to grow on the back of a series of steps to integrate operations of Wockhardt UK and esparma Germany with Wockhardt’s global supply chain,” Mr. Khorakiwala said. “Simultaneously, Wockhardt USA is working with our scientists in India to launch a host of new products in the US.”

International business grew by 87% during the quarter. The European Union and US together accounted for as much as 80% of Wockhardt’s international business. The second quarter also saw US FDA approval of Wockhardt’s sterile bulk drug and formulation facilities in the very first inspection.

Wockhardt’s consolidated income stood at Rs. 578 crores for the six months ended June 30, 2004, posting a 55% growth. Profit after tax grew by 119% to Rs. 95 crores for the first half and operating margins improved by 620 basis points to 22%. Operating profit at Rs.127 crores recorded a 115% growth in the first half.

Wockhardt Limited is one of India’s leading research and technology-based pharmaceutical companies and a front-runner in biotechnology. Wockhardt has an active multi-disciplinary R&D programme employing over 350 scientists. It is active in new drug discovery, with three molecules undergoing trials in India.

Wockhardt UK Ltd., Wockhardt’s wholly-owned UK subsidiary, brings together the businesses of CP Pharmaceuticals and Wallis Laboratory under one banner. esparma GmbH, a branded generics company in Germany, was acquired in May this year. Wockhardt USA Inc. was launched earlier this year to enlarge the company’s presence in the US generics market.

View Consolidated Unaudited Financial Results for the Quarter ended 30th June, 2004