The benchmark Sensex gained 0.37% to 28,182.57 points. So far 4,61,000 shares were traded on the counter. The current market cap of the company is Rs. 11227.26 crore.
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Following the development, shares of the company opened on a weak note at Rs 955.00 on BSE, then tanked 14.33 per cent to an intra-day low of Rs 870 and finally settled for the day at Rs 915.30, down 9.88 per cent.
Wockhardt Ltd. plunged the most in six months after its third drug-manufacturing plant in India was banned by the Food and Drug Administration from importing products into the U.S. Ankleshwar plant, which manufactures active pharmaceutical ingredients, is third plant of the company to receive an import alert from the USA drug regulator.
The FDA’s actions come following an inspection past year which resulted in a Form 483, highlighting a number of manufacturing concerns. The move could be seen as a setback to the company’s plans to revive its United States business. The agency recently inspected the Ankleshwar facility and three others, the company said in the report, and Wockhardt had responded to those findings.
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Wockhardt is one of the few companies with end to end integrated capabilities for its products, starting with the manufacture of the oral and sterile API’s, the dose forms and marketing through wholly owned subsidiary in the United States, enabling the company to capture maximum value. According to analysts, Wockhardt’s Ankleshwar plant accounts for 10-12 per cent of the company’s U.S. sales and 2-3 per cent of overall sales.
