Wockhardt stock plummets on US alert

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Shares of drug maker Wockhardt Ltd plunged 20% on Thursday as the US Food and Drug Administration (FDA) issued an alert banning the import of products made at the company’s injectables plant at Aurangabad in Maharashtra.

Wockhardt chairman Habil Khorakiwala confirmed in a telephone interview that the company had received an import alert from FDA on its Aurangabad plant, which manufactures sterile injectibles as well as solid oral drugs.

“The company expects a financial impact of $100 million in this financial year due to the import ban of products from this plant,” he said.

The stock closed at Rs.1,315.25, down Rs.328.80 from Wednesday’s finish.

The company is also expecting approval for a key product to be manufactured in this plant in the second half of this fiscal.

Meanwhile, Wockhardt called off a media conference on Monday (27 May) to announce its fourth quarter results, citing no specific reasons.

 

Source : Livemint

http://www.livemint.com/Money/FAHNpQwfh5vzVRwETkNnQL/Wockhardt-shares-drop-20-after-FDA-import-alert.html