Wockhardt aims at doubling turnover by '09

Mumbai-based pharmaceutical company Wockhardt has drawn up plans to increase its turnover by two-and-a-half times to Rs 4,500 crore by 2009 from Rs 1,729 crore in 2006.

The company, which follows the calendar year for its accounting purposes, expects that a large part of this turnover "� just under Rs 1,400 crore "� would come from acquired companies.

At present, acquired companies contribute about Rs 395 crore ($86 million) to its revenue. Wockhardt's balance sheet has about Rs 1,150 crore ($250 million) in cash which can be used to fund acquisitions of companies or brands.

It is screening about half a dozen pharmaceutical companies in Western Europe and other markets for acquisition.

"We are always on the lookout for facilities that can provide us value and strength. We have a record of turning around loss-making acquired facilities. We are also looking at acquiring brands in the domestic market in niche therapeutic segments," said Habil Khorakiwala, chairman, Wockhardt, at a meeting of analysts in Mumbai.

He said the company hoped to touch a turnover of Rs 2,300 crore ($500 million) for 2007, maintaining average net profit growth margins of 16 to 18 per cent in the next three years.

Two new focus divisions will be added in the field of dermaceuticals and oncology in 2007. Wockardt plans to launch seven new products in the next six months. It has planned 40 new product launches in Europe, the largest market for the company.

Commenting on Wockhard's operations in the US, Khorakiwala said the company had filed 45 abbreviated new drug approvals (ANDA), and eight of them had been approved in 2006. About 25 ANDAs are in the line for approval. The company expects seven more approvals in the first half of this year.

The company launched five products in the US market in 2006 and plans to file more than 30 ANDAs this year in the field of sterile products, novel drug delivery systems (NDDS) and active pharmaceutical ingredients (API). By 2009, Europe is expected to provide 45 per cent and the US about 15 per cent of the projected turnover of $1 billion.

The company invested over Rs150-160 crore in creating biotech manufacturing capabilities. It has done product registration for insulin in 61 countries, including 50 approvals in various markets. Most of the approvals came during the first half of 2006 and plans are to launch it in the regulated markets of US and Europe within the next 16 months. It will also launch a long acting insulin, an analogue which will reduce the dosage for patients, soon in the market.