Wockhardt (WOCKPHARMA) Q4 2003 earnings summary

Executive summary

• FY2003 consolidated revenue reached Rs. 9,796.37m, up 21% YoY; reported net profit was Rs. 1,426.05m, up 36%, with international expansion and the CP Pharmaceuticals acquisition as key drivers.

• International business contributed 57% of consolidated revenue, versus 16% five years earlier; milestones included the recombinant insulin launch and entry into the UK market through CP Pharmaceuticals.

Financial highlights

• Consolidated sales and services were Rs. 9,796.37m vs Rs. 8,090.99m; net profit was Rs. 1,426.05m vs Rs. 1,050.87m.

• Standalone revenue was Rs. 7,657.94m, up 3% YoY, and net profit was Rs. 1,333.59m, up 22%; operating cash inflow was Rs. 1,745.91m.

• Consolidated PBT included a Rs. 63.83m actuarial gain on the pension scheme; PBT before this gain was Rs. 1,533.09m.

Outlook and guidance

• Growth priorities: value-added generics in the US and Europe, biogenerics in less-regulated markets, and registrations of biopharmaceuticals in developed markets.

• Plans called for nearly 15 ANDA filings in 2004, following six filings in 2003; Captopril tablets were also planned for direct launch in the US wholesale market in 2004.

• WCK-771 was moving toward Phase II trials; WCK-1152 had completed pre-clinical studies and an IND was filed; Interferon alfa 2b was in Phase III trials.

• The first phase of the Aurangabad Biotech Park was complete, with global supply of key biopharmaceuticals planned from 2004.