Shares of Wockhardt extended their gains to third straight day, surging 10 per cent to hit a 7-month high of Rs 399, on the BSE on Tuesday on back of heavy volumes. The stock was trading at its highest level since June 27, 2019.
Till 11:00 am, a combined 3.67 million shares, representing 3.3 per cent of total equity, of Wockhardt have changed hands on the NSE and BSE.
In the past one month, the stock of the pharmaceutical company has zoomed 63 per cent, as compared to a 0.58 per cent rise in the S&P BSE Sensex.
On January 16, 2020, the Mumbai-based company became the first Indian pharmaceutical company to get the drug regulator's nod for two novel antibiotics, which it plans to launch in the next few months in the domestic market.
"The Drug Controller General of India (DCGI) has approved Emrok (injectable) and Emrok O (oral), used for acute bacterial skin and skin structure infections, including diabetic foot infections. The approval is based on a phase 3 clinical study involving 500 patients in 40 centres across India. The new drug will target superbugs, which have become resistant to other molecules," it said in a statement.
Meanwhile, for the first time in the past 3 years, Wockhardt bounced back to net profit of Rs 9 crore in the December 2019 quarter (Q3FY20), owing to marked improvement in operational performance and cost rationalisation. It had posted a net loss of Rs 82 crore in the previous quarter, and of Rs 121 crore in the year-ago quarter.
Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter showed a substantial improvement from Rs 19 crore in Q3FY19 to Rs109 crore in Q3FY20. Ebitda margin expanded to 12.5 per cent from 1.9 per cent in year ago quarter. However, sales during the quarter under review were at Rs 869 crore, lower by 17 per cent relative to corresponding quarter of the previous year.