Shares in Wockhardt Pharma fell as much 14 per cent on Wednesday after US drug regulator issued an import alert on the drug maker's Chikalthana facility. An import alert is issued when the Food and Drug Agency thinks a company's products present safety problems for US citizens.
The import alert is a big setback for Wockhardt because the company manufactures generic Toprol XL, its biggest product with sales of over $120 million at the Chikalthana facility. Toprol is a prescription medication for high blood pressure.
Ranjit Kapadia of Centrum Broking told NDTV that the issue will take at least six to nine months to resolve and Wockhardt will not be able to export any product from this facility leading to significant revenue loss.
As of 10.00 a.m., Wockhardt shares traded 7.7 per cent lower at Rs. 435.55 on the BSE as against 0.03 per cent gain in the broader Sensex. The stock had earlier hit a low of Rs. 406.
Wockhardt's loss is likely to be Dr Reddy's gain, which is the only other Indian drugmaker that has approval for Toprol. DRL can scale up and they migiht have an advantage, Mr Kapadia said.
DRL shares traded up 1.35 per cent at Rs. 2,444 on the NSE after muted start.
Source:- profit.ndtv.com
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