Wockhardt (WOCKPHARMA) Q4 1999 earnings summary

Executive summary

• 18-month results showed Rs 8,625 million operating income, annualized growth of 42%, and Rs 1,056 million profit after tax; period comparisons span 18 months versus 12 months.

• January 1, 2000 demerger separated the pharmaceutical business from hospitals, hospital products and biologically derived agro products.

• Merind integration, Wallis’s turnaround, new international ventures and ongoing R&D expanded market reach and the product pipeline.

Financial highlights

• 18-month sales and other income totaled Rs 8,730 million versus Rs 4,116 million for the prior 12 months; reported PAT was Rs 1,056 million versus Rs 708 million.

• Profit before extraordinary items and tax was Rs 1,158 million; a Rs 60 million provision for unrecoverable export debtors reduced profit before tax to Rs 1,098 million.

• Pharmaceutical business 1999 sales were Rs 4,268 million and PAT Rs 557 million, after a Rs 60 million extraordinary item; Life Sciences sales were Rs 1,772 million and PAT Rs 92 million.

Outlook and guidance

• Wallis planned MCA filings for 16 products in 2000, with ~12 launches expected; four NDDS-product ANDAs were planned for H1 2000.

• Marketing of recombinant human EPO was targeted for 2000, subject to regulatory approval; DMFs for 6–8 additional bulk actives were planned during the year.

• The demerged pharmaceutical business targeted global competitiveness, R&D-led products and larger brands; Life Sciences planned growth across hospitals, hospital products and agro products.