Wockhardt slumps 31% in 2-days on FDI alert

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oi-Sunil

By Sunil Fernandes

Updated: Saturday, May 25, 2013, 16:46 [IST]

Shares in pharma major Wockhardt were down another 11 per cent, after falling 20 per cent on Thursday after the U.S. Food and Drug Administration imposed an "import alert" on a plant operated by the generic drugmaker. The stock is at the lowest level since August 2012.

An "import alert", effectively a ban, results in detention without physical examination of drugs from firms that have not met so-called good manufacturing practices, according to the FDA website.
Wockhardt had said on Thursday that FDA alert could potentially affect $100 million in revenue on an annualised basis, but said it should be able to restore most of that within 6 to 9 months by shifting production to other facilities.

Wockhardt shares were down nearly 11 percent at 10.45 am.

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