WOCKHARDT LIMITED

Company Background alliances with leading pharmaceutical and majors such as Astra Zeneca, Wockhardt is a leading global pharmaceutical Aventis and Amylin. and biotechnology company based in . It had approximately 3500 employees as on 31 December, The following chart provides geography-wise 2005.The company manufactures and markets break-up of the company’s revenue. active pharmaceutical ingredients, formulations, , nutritional products and Wockhardt Limited in the EU vaccines. The EU is a strategic market for Wockhardt, with In 2005,Wockhardt had consolidated revenues an increasing amount of its revenues coming from of EUR 260.82 million. It has a strong presence the region. Some of the key drivers for Wockhardt’s in the world’s leading markets, with over 65 per growth in the EU are as follows: cent of its turnover coming from international • Exports markets. • New product launches • Penetration through strategic acquisitions The company has 10 manufacturing plants in India and the UK, and it has subsidiaries in the US, the Wockhardt recognises that the EU market will UK and Brazil.Wockhardt has manufacturing provide the impetus for the company’s growth. It has taken the inorganic route to growth in the Wockhardt Revenue Break-up by Geography: 2005 European Union.The company has made three acquisitions in the region and has effectively integrated and synergised their operations. 37%

Wockhardt Limited in the UK Wockhardt Limited UK is a fully owned subsidiary of Wockhardt Limited, India. It is one 41% 11% of the top-10 generic companies in the UK. The company is also ranked as the second-largest 11% generic supplier to hospitals in the UK. Wockhardt Limited UK had revenues of EUR USA 78.38 million in 2005, registering a growth of Europe 33.14 per cent over the previous year. India Rest of the World Source: Company Website Wockhardt UK was created through the merger of 136 Wallis Laboratory and CP Pharmaceuticals, which Factors for Success were acquired by Wockhardt Limited in 1998 and 2003, respectively.Wockhardt Limited gained the Strategic Acquisitions following advantages from these acquisitions: Wockhardt has an impressive track record in • CP Pharmaceuticals provided Wockhardt with acquisition management, with three successful a manufacturing base for pharmaceuticals. acquisitions in the EU market.These acquisitions • Wallis Laboratory provided Wockhardt with have strengthened Wockhardt’s position in the a base for the manufacturing and marketing high-potential UK and Germany markets, and have of medicines and personal care products. expanded the organisation’s global reach.

Wockhardt Limited UK operates through various Extensive Focus on R&D business divisions – retail and hospital medicines, R&D has been Wockhardt’s key area of focus. private label medicines, oral healthcare, contract It has applied for approximately 150 patents and manufacturing and export.The company’s robust has filed approximately 22 new drug applications. networking facilitates it in supplying its products Wockhardt has invested approximately 7.4 per globally. For example,Wockhardt supplies Porcine cent of its revenue on R&D, which has resulted Insulin to Canadian customers directly through in market gain for the company. It has more than Wockhardt UK. 400 scientists working in the fields of generic pharmaceuticals, biopharmaceuticals and new Wockhardt UK’s manufacturing site in Wrexham, drug discoveries. One of its new chemical Wales, underwent a major capacity expansion entities, effective against Methicillin Resistant programme in 2005. Its injectables facility has been Staphylococcus Aureus (MRSA) infection and approved by the US FDA. other drug-resistant infections, is currently undergoing Phase II human clinical trials. From 2005,Wockhardt Limited UK began undertaking Esparma GmbH (a subsidiary of Future Plans Wockhardt Limited in Germany) production, which was being outsourced earlier. Esparma Stress on Biogenerics – an Emerging Field GmbH outsources approximately 40 per cent It is expected that by 2010, biogenerics will of its production to Wockhardt Limited UK. constitute a 10-per cent share of the global Therefore, the current in-house production biopharmaceuticals business.Wockhardt plans facilitates Wockhardt in reducing costs and to tap this market by launching at least one providing it greater control over its entire value product every year. chain. The company’s expertise in biopharmaceuticals is Wockhardt in Germany backed by robust manufacturing, strong regulatory The acquisition of Esparma GmbH in 2004 has and marketing infrastructures, offering huge given Wockhardt a strategic entry in Germany, opportunities for outsourcing, and potential the largest generics market in Europe. Esparma has alliances with biotechnology leaders in the US and a strong presence in high-potential segments such the EU.Towards this end,Wockhardt has acquired as urology, and diabetology.The company comprehensive concept-to-market capabilities for also has a dedicated sales and marketing the international markets.The company has also set infrastructure. up front-end offices in the identified markets 137

through owned organisations, strategic joint ventures or distribution arrangements.

Increased Focus on the EU Wockhardt is eyeing markets in the EU as a part of its growth strategy.The company has a strong brand presence through various tie-ups with leading healthcare insurance providers in the EU. The next few years will witness the expiry of many patents in the EU, thereby creating significant potential for generics.

With the demand for speciality nutrition products increasing in the EU, the company is planning to increase its focus on them.With an enhanced understanding of customer needs,Wockhardt intends to tap the market requirement for nutritional products. It has placed great emphasis on the research for improved nutritional products.

www.wockhardt.com

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