Wockhardt having a muted day

Wockhardt is having a very muted kind of trading day today. Its in the red, down less than 1% but given the news which is doing the rounds, it is kind of surprising that the market kind of gave it the ignore.

Wockhardt, along with two other unlisted companies are under the scanner of the Central Drug Standards Control Organization (CDSCO) for allegedly launching combination drugs to treat diabetes and fungal infection without mandatory prior approval.

The CDSCO has made a serious allegation that Wockhardt and others have been selling drugs without conducting safety trials, thereby risking the lives of patients. The pharma authority is actually contemplating cancelling licenses.

As there hasn’t been much of a market reaction to this news, that stock exchanges are yet to seek a clarification.