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Wockhardt tanks over 40% post US FDA warning letter

The stock currently trading at its lowest level since April 2012, has fallen 41% in past 7-trading days as compared to 0.57% fall in S&P BSE Sensex.

SI Reporter  |  Mumbai 

Wockhardt is locked in lower circuit of 10% at Rs 575, extending its past six days fall, after the US Food and Drug Administration (USFDA) on July 18, issued a warning letter to the company for its manufacturing facility in Maharashtra.

The pharmaceutical stock, currently trading at its lowest level since April 2012, has underperformed falling 41% in past seven trading days from Rs 975 on July 17, as compared to 0.57% fall in S&P BSE Sensex.

A combined 1.38 million shares changed hands on the counter and there are pending sell orders for 110,123 shares on BSE and NSE at 1157 hours.

In its letter dated July 18, addressed to Dr. Habil Khorakiwala, founder of the company, the FDA said it might freeze approvals for any new launches Wockhardt was planning in America until the company addressed its concerns about the Waluj plant.

FDA also recommended Wockhardt hire independent auditors to review its operations at Waluj and asked the company to detail its plan for an upgrade.

According to Wockhardt, the US FDA import alert will cause an annual loss of $100 million (Rs 600 crore).

First Published: Fri, July 26 2013. 11:56 IST
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