Warner Chilcott Ltd. (Warner Chilcott), reported moderate growth in 2Q 08 revenues supported by Oral Contraceptive (OC) and Dermatology products. Operating and net margin experienced strong growth, primarily due to lower operating expenses, as a percentage of sales, compared to 2Q 07. Going forward, we remain optimistic for the company’s performance driven by sales of promoted products such as Leostrin 24 FE, Femcon FE, Taclonex, Doryx and other new launches in FY 2008. Furthermore, we expect the marketing approvals for 150 mg dose of Dorxy delayed release tablets and Taclonex Scalp in the US in 1Q 08 to positively impact revenue growth in FY 2008. However, the expected marketing of Sarafem generics (the patent of which expired on May 2008) and Ovcon generics, currently in the market, is expected to negatively impact revenue growth, going forward. However, we believe the company’s focus on improving its product pipeline and strategic agreements for manufacturing and marketing products will complement the company’s future goals. Consequently, we maintain our positive outlook for the company and believe it offers an attractive investment opportunity at current levels.

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