Warner Chilcott Ltd. (Warner Chilcott), a leading specialty pharmaceutical company focused on women’s healthcare and dermatology in the US reported healthy 1Q 08 revenues, which were in line with our expectations while operating margin was above our expectation. Revenue growth was primarily driven by strong sales from the Dermatology and Hormone Therapy segments. Going forward, we remain optimistic about the company’s ability to generate revenues supported by new launches and licensing agreements in FY 2008. Furthermore, we expect the company to show strong revenue growth in FY 2009. Warner Chilcott received approval for marketing the 150mgdose of Dorxy delayed release tablets in the US. Taclonex Scalp was approved for marketing in the US. This will further support revenues. However, we expect the arrival of generic versions of Sarafem (patent expired on May 2008) to adversely impact revenue growth in FY 2008. Nevertheless, the stock provides an attractive investment opportunity at current price levels. Hence, we maintain our positive outlook for the company and reiterate our BUY rating for the company’s Common stock.

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