Company Products Established Founder Distribution Production plants

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Shannon Jacobs
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1 WOCKHARDT Wochardt ranks amongst India's leading pharma companies with a strong focus on biotech products. Background Wockhardt, is India's leading research based biotechnology, pharmaceuticals and health care enterprise. It traces its roots back to 1960s when the Mumbai-based Khorakiwala family bought a small pharmaceutical company that manufactured medicines for common cold and cough.till 1992, the company focused its operations towards becoming a major player in the Indian pharmaceutical industry.thereafter it concentrated its energies to become a global player. In 1998 it acquired Merind, a former affiliate of Merck Sharp and Dohme of the US.This enabled it to enter new therapeutic areas like corticosteroids, psychiatry and neurology. In the same year Wockhardt also acquired Wallis laboratory of the UK.Wockhardt acquired CP Pharmaceuticals in the United Kingdom in the year 2003, thereby gaining access to a large customer base of hospitals and the National Health Service (NHS). Largely due to these highly successful acquisitions, today it is the largest Indian pharmaceutical company in the UK and one of the top ten generic pharmaceutical companies in UK. The acquisition strategy continued in 2004 in Europe when Wockhardt acquired the brands, businesses and marketing infrastructure of Esparma GmbH of Germany. The manufacturing facilities of Wockhardt are spread across India and UK, with nine manufacturing plants in India and one in UK.These facilities have the approval of major regulatory bodies, including US FDA and UK's MHRA with capabilities for both finished dosage formulations and API.The state-of-the-art biotech park in Aurangabad is designed according to US FDA and EMEA (European Medicines Agency) standards.the company has subsidiaries in US, UK and Brazil, majority-owned companies in South Africa and Mexico and marketing offices in Africa, Russia, Central and South East Asia. The promoters hold the majority stake in the company (74.9 per cent of the equity stake).the next largest shareholders are the Indian public (11.2 per cent equity stake), followed by foreign institutional investors and overseas corporate bodies (5.1 per cent stake). Insurance companies, mutual funds, domestic financial institutions, banks, corporate bodies, non-resident Indians and shares representing GDRs constitute the remaining stake. Company Products Established Founder Distribution Production plants 194 Wockhardt Pharmaceuticals 1960 Khorakiwala India, Americas, India, UK Family Europe, Middle East, Asia Pacific, Africa

2 Product segment Diabetology Nephrology Pain Management Nutrition Neuro-Psychiatry Cough Therapy Power Brands Wosulin Mopaday Glimaday Wepox Proxyvon Spasmo-Proxyvon Methycobal Dexolac Decdan Libotryp Tryptomer Zedex Bro-Zedex Viscodyne Source: Company website presence in topicals (Nadifloxacin) and is among the worlds leading producers of API (Vitamin B12 and Dextromethorphan).Wockhardt has a significant presence in pain management, cough therapy, psychotic drugs, diabetology, vaccines, nutrition and animal health. It has embarked on a Power Brands strategy with a marketing emphasis on its brands that have contributed to significant market leadership. Wockhardt UK's oral healthcare products are sold both as own brand (ConfiDent) as well as private label to a large number of European retailers like Boots, Superdrug, Sainsbury, ASDA, Morrisons (UK), Kruidvat, Delhaize,VIP, Aldi, and Redwin (Global). Financial Analysis Products and Brands Wockhardt's market presence covers formulations, biopharmaceuticals, nutrition products, vaccines and API.The company has around 720 products in research driven fields such as diabetes, oncology, neurology, nephrology, infection, psychiatry, respiratory, cardiology, nutrition steriles, biotech, oral, topical and API. Wockhardt product portfolio constitutes two broad categories - generics and biotechnology. Its generic products include as Ranitidine, Enalapril, Famotidine and Bethanechol, which are marketed in the US.The company's biotechnology focus has resulted in the successful development and marketing of important recombinant products, namely Biovac (Hepatitis-B vaccine),wepox (recombinant Erythropoietin used in dialysis and for cancer patients) and Wosulin (recombinant insulin).the company has made a breakthrough with Interferon alpha 2b (an antiviral used in multiple sclerosis and cancer) and Glargine (a novel long-acting insulin). Growth stimulating factors (GSF) are in the development pipeline. It also has a Wockhardt's sales crossed the US$ 200 million mark in 2005, having witnessed a CAGR of 13.8 per cent between 2001 and Exports, which constitute more than 35 per cent of total sales grew at an impressive CAGR of 31 per cent during the same period.the company posted a CAGR of 32.5 per cent in its net profits in this period driven mainly by the increased scale in European markets due to integration of businesses and increased transactions in biotech business.the profitability margins have shown phenomenal increase in the year 2005 mainly on account of high savings in material cost, with operating margin at 31.2 per cent and net margin at 23.6 per cent.wockhardt is also in the midst of shifting a major portion of manufacturing of CP Pharma and Esparma to India, which shall yield further savings in manufacturing cost. Wockhardt's contribution in making Made in India global International business constitutes as much as 60 per cent of Wockhardt's revenue.the world's most sophisticated pharmaceutical markets, the US and 195

3 Europe, today account for about half of the company's turnover. For the last one decade, the company has been pursuing global business opportunities and growing by pitching itself against the world's most competitive players in generic pharmaceuticals.this has been made possible by pioneering research and successful acquisitions in potential markets. In Europe the company has identified exports, new product launches and strategic acquisitions as growth drivers. Its European presence consists of Wockhardt UK in the United Kingdom, formed after the integration of the two companies acquired by it,wallis Laboratory and CP Pharmaceuticals, and Esparma GmbH in Germany, acquired in In the US market Wockhardt has set up a sales and marketing subsidiary,wockhardt USA Inc., headquartered at New York, to enable it to capture greater value from its US operations.today, Wockhardt has six Abbreviated New Drug Application (ANDA) approvals in its pool - Famotidine, Ranitidine, Captopril, Enalapril, Bethanechol Chloride, and Cefuroxime Axetil. Another 50 ANDAs are in various stages of the developmental pipeline.the highlight of its US operations is its ascent to a leadership position in Bethanechol Chloride in the US market, garnering a 40 per cent market share. Wockhardt UK Limited is amongst the 10 largest generics companies in UK and the second largest hospital generics supplier. It has a US FDA approved manufacturing facility for injectables.this facility plays a strategic role in driving growth through partnerships in contract manufacturing. Wockhardt UK has entered into a product development and contract manufacturing relationship with Amylin Inc. for Exenatide. It has also built up a critical mass in private label overthe-counter drugs and dental care (denture cleaning tablets, powders and fixative creams).

4 Its German subsidiary Esparma GmbH has been identified as the vehicle for future acquisitions in the European market.the Esparma business was acquired with the brands, sales and marketing infrastructure sans the manufacturing facility and is expected to focus on neurology and urology, two high growth segments in Germany. In the emerging markets, the company has a presence through its subsidiary in Brazil, joint ventures in Mexico and South Africa as well as a market presence in Russia, Ukraine, Kazakhstan, Vietnam, Myanmar, Sri Lanka, Kenya, Ghana, Nigeria and Tanzania. Its subsidiary in Brazil,Wockhardt Farmaceutica Do Brazil Limited, was established in 2004 for marketing its generics and biotech products. Brazil is one of the world's top 10 generic markets, and is expected to emerge as a key market for Wockhardt after India, Europe and the US. Its joint venture in Mexico is with the country's leading national company to sell all forms of insulin manufactured by Wockhardt.This joint venture is planning to undertake marketing of other diabetology products and biopharmaceutical products at a later stage.the joint venture with Pharma Dynamics in South Africa has been formed for marketing Wockhardt's products in the country. Factors fuelling Wockhardt's global initiatives Aiding Wockhardt's globalisation plans are its ten world-class manufacturing plants and their state-ofthe-art research laboratories.wockhardt's global success has been made possible due to the technological advances brought about in the manufacturing set-up, to keep pace with requirements of global regulators like US FDA, MHRA and EMEA.The company has also established its own local offices in the US and Europe to coordinate its business with regulators. The insights gleaned from this experience are helping Wockhardt to interact with regulators in other potential markets. In the area of clinical trials Wockhardt has developed capabilities in undertaking successful trials.the trials on Wosulin, Asia's first recombinant insulin, marked a significant upward shift in Wockhardt's learning curve. For the first time, the trials were conducted as per ICH (The International Conference on Harmonisation of technical requirements for Registration of Pharmaceuticals for Human Use).These trials were unprecedented in Wockhardt's history and the learnings and insights gathered have been a competitive advantage for the company. The company's young and talented human resource pool, drawn from various countries, has been a great facilitator in transforming Wockhardt to the position it is today.the constant upgradation of their skill sets and globalisation of its work culture have helped Wockhardt in its globalisation plans. 197

Future plans The company has received 26 approvals for its biopharmaceutical products from 18 countries These would drive the growth of the biopharma division in the future.

5 Future plans The company has received 26 approvals for its biopharmaceutical products from 18 countries These would drive the growth of the biopharma division in the future.wockhardt does contract manufacturing for leading multinational companies in Europe and the US. plans in the biotech domain. It has targeted to launch one biotech product from its portfolio every year and expects its biotech sales to grow faster. It also intends to continue with its research orientation towards developing newer products for the market. 198 Wockhardt is also in the process of expanding its dermatology business. It has made a sound beginning by gaining exclusive marketing rights for their Nadifloxacin brand (Nadoxin).This drug is not only an effective treatment for a wide range of tropical bacterial infections but has also proven ability against Mupirocin and Fusidic acid-resistant strains. The company has recently received approval from US FDA for marketing Zonisamide capsules in the US market. Zonisamide is the generic version of Dainippon's Zonegran capsules with a market size of US$ 174 million. Given that Wockhardt has developed competence in the biotech segment, it has laid down aggressive Globalisation at a glance Revenues from international markets constitute nearly 60 per cent of total sales, with most of them coming from US and Europe Six ANDA approvals for drugs in its portfolio in the US Acquisitions of 3 international pharma companies - 2 in UK and 1 in Germany Subsidiaries in US, UK, Germany and Brazil Market presence in Russia, Ukraine, Kazakhstan, Vietnam, Myanmar, Sri Lanka, Kenya, Ghana, Nigeria and Tanzania Subsidiary in UK amongst the top 10 generic companies in the country

PHARMACEUTICALS EXPORT PROMOTION COUNCIL (Set up by Ministry of Commerce, Govt. of India)

PHARMACEUTICALS EXPORT PROMOTION COUNCIL (Set up by Ministry of Commerce, Govt. of India) COPY Date : 23-02-2010 News / Story reproduced with thanks:- Stockmarkest.com Indian pharmaceutical industry has