Mumbai, July 28: A rise in R&D expenditure saw Wockhardt net profit in the second quarter ended June 30 falling to Rs 49.5 crore from Rs 79.9 crore in the corresponding period of the previous year.

This came even as total income increased to Rs 292.7 crore from Rs 278.1 crore a year ago.

On a consolidated level, sales grew 9 per cent to Rs 413 crore during the quarter. However, profit after tax declined 18 per cent largely due to a 77 per cent increase in R&D expenditure and the expenses incurred on commercial commissioning of Wockhardt Biotech Park.

“We are investing significantly in research and manufacturing in India in order to expand our US presence,” Wockhardt chairman Habil Khorakiwala said.

The company has forayed into the sterile injections market and received its first approval for a novel drug delivery system (NDDS) in the US.

Commenting on the performance of various business divisions, Wockhardt said its India business grew 26 per cent in the first half of 2006. Power brands continue to drive the domestic business performance.

During the first half, the Proxyvon range grew by 51 per cent. Biotech products Wosulin (recombinant insulin) and Wepox (erythropoietin) continue to do well with 35 per cent and 28 per cent growth respectively.

Wockhardt consolidated its leadership in the Indian medical nutrition market by acquiring Dumex India with its heritage brands Farex and Protinex.