With increased sales from its newly-acquired operations in Europe, domestic drug maker Wockhardt Ltd posted 46% growth in net profit at Rs108 crore in its third quarter ended September compared with the corresponding previous quarter.
The total sales of the company, which is a leading player in pharmaceuticals and biotechnology, was up by 68.5% at Rs738 crore with an operating profit of Rs181 crore.
Wockhardt, which has a global presence, including in the UK, the US France, Germany, and Ireland, had posted total sales of Rs438 crore with a net profit of Rs74 crore in the comparable quarter last year. Early this year, Wockhardt acquired two companies—Negma Laboratories Ltd in France and Pinewood Laboratories in Ireland —for $265 million (Rs1,052crore) and $160 million. These acquisitions boosted its presence in the European market for generic drugs. Wockhardt shares closed on Tuesday at Rs421.80—up 1.64% on the Bombay Stock Exchange.
Chairman Habil Khorakiwala said, “We have achieved this quarter a robust growth in sales and profits. We expect this trend to continue as we are fully focused to create value from the recent acquisitions.”
Wockhardt’s domestic sales have also shown a 20% growth this quarter, which is much higher than the industry growth across all therapeutic segments. “As far as the future prospects in the international market is concerned , we are now planning to file our insulin product, which is expected to hit the market by 2008 in the US and the UK depending on the biopharmaceuticals’ approvals in these countries,” he added. Wockhardt’s results were almost along expected lines as it had additional sales from the acquired assets and also better profits through a host of cost-cutting measures both in its domestic and international operations, said a pharma analyst, who did not want to be named. Wockhardt earns almost 70% of the sales revenue from its international operations.