Wockhardt tumbles after warning letter from USFDA

Wockhardt tumbled 10.61% to Rs 795 at 9:46 IST on BSE after the company said it has received a warning letter from USFDA, listing the observations made by it during its earlier inspection of the company's Waluj facility near Aurangabad.

The announcement was made on Saturday, 20 July 2013.

Meanwhile, the S&P BSE Sensex was unchanged at 20,149.61.

On BSE, 1.62 lakh shares were traded in the counter as against average daily volume of 1.36 lakh shares in the past one quarter.

The stock hit a high of Rs 892 and a low of Rs 780 so far during the day. The stock had hit a 52-week low of Rs 732 on 8 July 2013. The stock had hit a record high of Rs 2,166.05 on 12 March 2013.

The stock had underperformed the market over the past one month till 19 July 2013, sliding 18.53% compared with the Sensex's 4.7% rise. The scrip had also underperformed the market in past one quarter, declining 50.79% as against Sensex's 5.96% rise.

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

Wockhardt had on 24 May 2013 said that the company received an 'import alert' from the United States Food and Drug Administration (USFDA) on one of its manufacturing unit located at Waluj. The company at that time said that the impact of the import alert on the revenues is estimated to be in the range of $100 million on an annualised basis.

Wockhardt said that the company continues to cooperate with the United States Food and Drug Administration (USFDA) to resolve the issues at the earliest. If any additional measures are necessary, the company would take them to squarely address all concerns, Wockhardt said.

Wockhardt reported consolidated net profit of Rs 334.76 crore in Q4 March 2013, as against net loss of Rs 191.64 crore in Q4 March 2012. Net sales rose 26.4% to Rs 1485.50 crore in Q4 March 2013 over Q4 March 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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