Wockhardt To List On US Exchange

Mumbai, July 26 | Updated: Jul 28 2004, 05:10am hrs
The board of Wockhardt Ltd has 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 $100 million.

Wockhardt chairman Habil Khorakiwala said, Wockhardt is fully committed to expanding its business in the European Union through internal growth as well as acquisitions. The boards approval to invest $100 million is a significant step in that direction.

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

The company is yet to decide on which stock exchange it intends to be listed in the US. It will take another 8-9 months for the entire process to be completed. As a part of its expansion plan in the European region, the company is looking at countries like France and Spain for probable acquisitions, said a company source.

The two resolutions were approved at a board meeting at Wockhardt UK Ltd headquartered in Wrexham, UK. Wockhardt UK Ltd 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.

Said Mr Khorakiwala, 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 Wockhardts global supply chain. Simultaneously, Wockhardt USA is working with our scientists in India to launch a host of new products in the US.

During the second quarter ended June 30, 2004, Wockhardt posted a consolidated net profit of Rs 50.1 crore as against Rs 35 crore during the corresponding period for the previous fiscal, recording a growth of 43 per cent. Consolidated revenue increased from Rs 211 crore to Rs 289.2 crore during the quarter under review, registering a 37 per cent growth.

International business grew by 87 per cent during the quarter. The European Union and US together accounted for as much as 80 per cent of Wockhardts international business. Wockhardts sterile bulk drug and formulation facilities was also approved by US FDA during the quarter under review.