Wockhardt tumbles on buzz of FDA probe

Shares of Wockhardt extended recent losses. It slumped 9.99% to Rs 1750.80 on Friday, 12 April 2013. It fell 3.61% to Rs 1,945.20 on Thursday, 11 April 2013. The stock is down 17.82% in the preceding three sessions from a recent high of Rs 2,018.15 on 10 April 2013.

Meanwhile, the BSE Sensex was up 167.20 points, or 0.92%, to 18,409.76.

On BSE, 1.51 lakh shares were traded in the counter as against an average daily volume of 31,349 shares in the past one quarter.

The stock hit a high of Rs 1,814.50 and a low of Rs 1,577.70 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 612 on 13 April 2012.

The stock had underperformed the market over the past one month till 12 April 2013, sliding 17.21% compared with the Sensex's 6.76% fall. The scrip had, however, outperformed the market in past one quarter, rising 4.71% as against Sensex's 7.23% fall.

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

Wockhardt is reported to be facing issues with the United States Food and Drug Administration (USFDA), which has sought clarifications on its injectables facility in Aurangabad.

As per the report, a USFDA team inspected the Aurangabad facility last month, and had issued FDA 483 letter.

The form 483 is issued when the FDA observes any violation from standard manufacturing practices, which is generally followed by a warning letter if the agency is not satisfied with the responses.

However, the report also added that the Aurangabad unit does not contribute more than 3-4% of Wockhardt's US revenues.

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.

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.

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