Wockhardt slumps after FDA alert on Chikalthana plant

Wockhardt slumped 9.11% to Rs 429 at 11:31 IST on BSE after the US drug regulator imposed an import alert on the company's Chikalthana plant in Maharashtra.

Meanwhile, the BSE Sensex was down 37.85 points, or 0.19%, to 20,387.17.

On BSE, 13.03 lakh shares were traded in the counter compared with average volume of 2.60 lakh shares in the past one quarter.

The stock hit a high of Rs 466.90 and a low of Rs 406 so far during the day. The stock hit a record high of Rs 2,166.05 on 12 March 2013. The stock hit a 52-week low of Rs 344.15 on 8 August 2013.

The stock had outperformed the market over the past one month till 26 November 2013, rising 3.66% compared with the Sensex's 1.25% fall. The scrip had, however, underperformed the market in past one quarter, rising 0.65% as against Sensex's 10.06% rise.

The mid-cap company has an equity capital of Rs 54.88 crore. Face value per share is Rs 5.

The US Food and Drug Administration (USFDA) has imposed an import alert, effectively a ban, on the Chikalthana plant operated by Wockhardt.

An import alert results in the detention without physical examination of drugs from firms that have not met good manufacturing practices.

Wockhardt's Chikalthana facility in Maharashtra offers full commercial manufacturing services for conventional solid and sterile liquid forms.

On a consolidated basis, Wockhardt's net profit fell 69.5% to Rs 138.50 crore on 11.2% fall in net sales to Rs 1196.97 crore in Q2 September 2013 over Q2 September 2012.

Wockhardt is a high-technology intensive global pharmaceutical and biotechnology company with multi-disciplinary and innovative R&D programmes. It has three research centres globally and manufacturing facilities across India, USA, UK and Ireland. The company has a significant presence in USA, Europe and India.

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