Wockhardt sets up JVs in Mexico, S Africa

Pharmaceutical major Wockhardt today announced the formation of majority joint ventures in Mexico and South Africa, besides the establishment of a wholly owned subsidiary in Brazil.

With focus on biopharmaceuticals, these ventures are expected to spearhead the company's international business growth in the future.

In Mexico, the company has signed a joint venture agreement with Representaciones E Investigaciones Medicas SA to float a company in which Wockhardt will own 51 per cent.

It will initially market all forms of insulins manufactured by Wockhardt. At a later stage, it will market other diabetology products and biopharmaceutical products of Wockhardt.

Wockhardt South Africa Pty has been floated as a 51:49 joint venture between Wockhardt and Pharma Dynamics, a generic pharmaceutical company in South Africa.

The joint venture will use the regulatory, sales and marketing expertise of Pharma Dynamics to commercialise the growing pharmaceutical and biopharmaceutical portfolio of Wockhardt.

The company's subsidiary in Brazil is christened Wockhardt Farmaceutica do Brasil.

Habil Khorakiwala, chairman of Wockhardt, said: "With these ventures, we are now establishing building blocks of our global footprint in biopharmaceuticals. We have already received nine approvals for our biopharmaceuticals and expect another 25 approvals during the year in Russia, former CIS countries, South America, South East Asia and North Africa. We now have a ground presence in almost all major markets of the world."

Meanwhile, Wockhardt has reported a 25.6 per cent increase in net profit at Rs 63.2 crore for the fourth quarter ended December 31, 2004, compared with Rs 50.3 crore in the corresponding quarter of the previous year. Total revenues for the quarter stood at Rs 343.8 crore, up 21.1 per cent against Rs 283.8 crore in the previous year.

For the year ended December 31, net profit increased 49.7 per cent to Rs 213.5 crore from Rs 142.6 crore last year. Total sales was Rs 1238.9 crore against Rs 942 crore last year, a 31.5 per cent increase.