Wockhardt slumps after FDA import alert

Meanwhile, the S&P BSE Sensex was down 2.32 points, or 0.01%, to 19,672.01.

On BSE, 5.06 lakh shares were traded in the counter as against an average daily volume of 56,040 shares in the past one quarter.

The stock hit a high of Rs 1,230 and a low of Rs 1,066 so far during the day. The stock had hit a record high of Rs 2,166.05 on 12 March 2013. The stock had hit a 52-week low of Rs 705 on 23 May 2012.

The stock had outperformed the market over the past one month till 23 May 2013, sliding 28.89% compared with the Sensex's 2.58% rise. The scrip had also outperformed the market in past one quarter, slumping 31.89% as against Sensex's 1.85% rise.

The large-cap company has an equity capital of Rs 54.79 crore. Face value per share is Rs 5.

The US Food and Drug Administration (USFDA) on Wednesday, 22 May 2013, issued an "import alert" on medicines manufactured at Wockhardt's plant at Aurangabad in Maharashtra after the plant failed an FDA safety inspection. The import alert requires that any drugs sent from this plant be impounded by US customs.

Shares of Wockhardt slumped 20% to Rs 1,315.25 on Thursday, 23 May 2013. The stock is down 27.62% in two sessions from a Rs 1,644.05 on Wednesday, 22 May 2013.

Wockhardt Chairman Habil Khorakiwala was quoted by media as saying on Thursday, 23 May 2013, that the FDA's action potentially affects $100 million in revenue on an annualised basis. However, he added that the company should be able to restore most of losses within 6 to 9 months by shifting production to other facilities.

Mr. Khorakiwala added that the company is in the process of implementing corrective measures to be in compliance with the FDA guidelines. He declined to say what medicines are produced at the factory.

Wockhardt will continue to export medicines from its other 13 manufacturing facilities world-wide, he added. Mr. Khorakiwala said it will take a few months before Wockhardt can approach USFDA to have the ban lifted.

Wockhardt's consolidated net profit jumped 101% to Rs 427.84 crore on 25.8% growth in net sales to Rs 1435.04 crore in Q3 December 2012 over Q3 December 2011. The company will announce its year ended March 2013 results on 27 May 2013.

Wockhardt is a high-technology intensive global pharmaceutical and biotechnology company with multi-disciplinary and innovative R&D programmes. It has 3 research centres globally and manufacturing facilities across India, USA, UK and Ireland. The company has a significant presence in USA, Europe and India, with 80% of its global revenues coming from international businesses.

Powered by Capital Market - Live News