Wockhardt in bad health

Wockhardt, which was on the 20% lower circuit yesterday, remains the top loser on the BSE currently, down 11%at Rs.1165. Intra day low stands at Rs.1066.

The stock is deep in the red after the US FDA issued an import alert at one of its facilities in Aurangabad, Mahrashtra. This is expected to cause a potential revenue loss of US$ 100 million per annum. The US FDA during its inspection found some good manufacturing practice compliance issues at injectible manufacturing facility. Though the company said that it can restore 80% of the affected revenue within 9 months, the dark cloud hangs over the company for now. It has sumitted a remeidial action plan to the US FDA. As such the Indian pharma sector is trying to shake off the overhang of Ranbaxy and this has only gone on to add more to its trouble.