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Wockhardt’s UK Business Grows But Other Markets Underperform

Wockhardt’s UK Business Grows But Other Markets Underperform

Source : 'Generics Bulletin'

Wockhardt Limited has enjoyed significant growth in its UK business, reporting an increase of 14% in sales to INR2.61bn ($35.7m) for the firm’s financial fourth quarter ended 31 March 2021. The company also saw an annual growth of 13% in UK sales, clocking in INR10.13bn for FY21.

The pharmaceutical and biotech company, which has been one of the largest suppliers into the UK’s National Health Service for over 20 years, said that the UK business contributed about 41% of its global revenue in Q4 FY21 that was down by around a fifth to INR6.32bn. Meanwhile, the UK accounted for 37% of its global revenue for the financial year that fell by 17% to INR27.62bn.

In terms of earnings before interest, tax, depreciation and amortization (EBITDA) the company reported a loss of INR800m in the fourth quarter of 2021, as it delivered an underwhelming performance in US, India, Ireland and emerging markets.

Although the US business contributed 15% of Wockhardt’s global revenue in the fourth quarter, the company’s reported US sales of INR950m in Q4 FY21 were around half of the INR1.89bn reported in the prior-year period. For the financial year 2021, Wockhardt’s US turnover stood at INR4.44bn, as compared to INR7.34bn in FY20.

Furthermore, in India, the company’s sales – including both continuing and discontinued operations "Dr Reddys Snaps Up Wockhardts Branded Generics Business" "Generics Bulletin" – stood at INR1.18bn for the fourth quarter of FY21, a significant drop compared to the INR1.77bn reported in the prior-year period. But when it comes to India’s continuing business, Wockhardt said it had enjoyed growth of 63%in Q4. The company’s India market contributed to 19% of its global revenue during the fourth quarter of FY21 and 16% for the full year, for which Wockhardt’s India business dropped by almost half to INR4.8bn from INR8.83bn in FY20.

When it comes to Wockhardt’s Irish business, the company clocked in INR320m in Q4FY21, down 16%, while on a full-year basis the Irish business declined by around 5% to INR1.45bn.

Representing around 19% of sales, Wockhardt’s emerging markets business stood at INR1.21bn during Q4 FY21, compared to INR1.33bn reported in the prior-year period. However, for FY21, the company’s emerging markets business saw a slight growth of 2% to INR5.57bn, again contributing a fifth of the firm’s turnover.

The company noted that its research and development expenditure during the quarter was 8% of sales and during the year was 6% of sales. The company filed five patents and has been granted 11 patents during Q4 FY21. With this, Wockhardt holds 763 patents and as its cumulative filings till date sum up to 3,187.

Recently, Wockhardt announced a six-month extension of its agreement with the UK government “to fill-finish COVID-19 vaccines,” expanding the contract from 18 months to 24 months, to August 2022, as the manufacturing of the vaccines continues to take place at CP Pharmaceuticals, a subsidiary of Wockhardt based in Wrexham, North Wales. "Alvogen Companies Donate To Support COVID Vaccines" "Generics Bulletin"

The company said that it has seen “major growth” on the back of the COVID-19 vaccine business in the UK – reporting a contribution of around  £5m ($7m) for the fourth quarter of FY21 and £13m for FY21 as a whole.

The company noted that it would be supplying “multiple vaccines” to the UK Government, including AZD1222, the vaccine co-invented by the University of Oxford and its spin-out company, Vaccitech, and licensed by AstraZeneca.

By Akriti Seth