Wockhardt drops after USFDA makes nine observations after inspecting Aurangabad plant

Wockhardt dropped 3.61% to Rs 1,241.90 at 11:40 IST on BSE after the company announced that the USFDA has made nine observations after inspection at the company's manufacturing unit at Shendra in Aurangabad.

The announcement was made by the company after market hours on Friday, 15 January 2016.

Meanwhile, the S&P BSE Sensex was down 51.62 points or 0.21% at 24,403.42.

More than usual volumes were traded on the counter. On BSE, so far 4.93 lakh shares were traded in the counter as against average daily volume of 1.62 lakh shares in the past one quarter. The stock hit a high of Rs 1,285 and a low of Rs 1,146.40 so far during the day. The stock had hit a 52-week high of Rs 2,000 on 8 April 2015. The stock had hit a 52-week low of Rs 1,021.50 on 15 January 2015. The stock had underperformed the market over the past one month till 15 January 2016, sliding 17.99% compared with Sensex's 3.42% fall. The scrip had also underperformed the market in past one quarter, declining 18.01% as against Sensex's 9.46% fall.

The large-cap company has equity capital of Rs 55.25 crore. Face value per share is Rs 5.

Wockhardt said it would send appropriate reply to the inspecting authority, the US Food and Drug Administration (USFDA) in due course. The company added that the Shendra manufacturing unit is a new facility and presently there is no supply of products from this unit to US markets.

Shares of Wockhardt had slumped 14.98% to Rs 1,288.40 on Friday, 15 January 2016, triggered by the reports that the company has received Form 483 from the US drug regulator for its Shendra plant in Aurangabad, Maharashtra.

Separately, Wockhardt in its clarification issued after market hours on Friday, 15 January 2016 with regard to media news item titled Wockhardt recalls 62,555 bottles of antibiotics in US said that the latest media reports of recall of antibiotics in US forms part of the earlier event. Wockhardt had informed the same to the stock exchanges on 28 April 2015 that it had decided to recall, as part of remedial measures the remaining batches in the US market that were manufactured prior to USFDA import alerts even though there was no evidence of risk to patient safety from these products.

On consolidated basis, Wockhardt's net profit rose 2863.9% to Rs 107.59 crore on 29.9% growth in net sales to Rs 1231.65 crore in Q2 September 2015 over Q2 September 2014.

Wockhardt is a research based and technology intensive global pharmaceutical and biotechnology company.

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