Wockhardt at new low
Wockhardt has replaced Gitanjali Gems as the top loser on the BSE. The stock is currently down 9.5% at Rs. 804.85, with an intra day as low as Rs.780. It had hit a new 52-week low on 8th July’13 at Rs.732.
The stock has slipped sharply into the red after the company stated that it had received a warning letter from US FDA over its facility at Waluj in Maharashtra for not meeting manufacturing norms. This is the same unit which, last week, had received a precautionary recall for sixteen medicines from UK Medicines and Healthcare Products Regulatory Agency (MHRA). This was on its manufacturing shortcomings and MHRA had also imposed an import alert on the unit prior to getting the recall.
The company has stated that it has initiated several corrective actions to resolve the same. It also maintains that the monetary implications of the import alert on the company's consolidated revenues would be in the range of US$100 million on an annualised basis.