Wockhardt contiues to lose

Wockhardt has been on a weak footing since yesterday and today too, it remains deep in the red. Currently the top loser on the BSE, the stock is down almost 8% at Rs.1227 and thus is after hitting an intra day low at Rs.1181.

The market is spooked because the US FDA seems to have come back to haunt the company. The company, issued a statement today morning stating that during the last US FDA cGMP inspection of the facilities at L1- Chikalthana and Waluj in Aurangabad, Maharashtra, some observations were reported pertaining to batches of some products manufactured prior to the US FDA Import Alerts.

The company said that though the company continues to supply some of the products in the US market manufactured in the same facilities, several batches of other products, manufactured prior to the Import Alerts may still be in the US market.

As a measure of preparedness and as an abundant precaution, the company has now decided to recall, as a part of remedial measure all the remaining batches in the US market that were manufactured prior to the US FDA Import Alerts even though there is no evidence of risk to patient safety from the products currently available in the US market.

The good news here is that there is really no panic situation as earlier, the company is making a premptive move. Additionally, the MHRA, UK has restored the EU GMP certification of the company's potent product facility at Kadaiya, Daman.