Wockhardt falls 5% after Maharashtra FDA files 7 FIRs
The Maharashtra FDA alleges that the Mumbai-based company continued to sell drugs based on a pain killer even after it was banned on May 23 and also delayed recalling the drug from the market.
August 06, 2013 / 12:15 IST
Moneycontrol Bureau
Pharma major Wockhardt hit its 5 percent lower circuit limit on Tuesday after the Maharashtra Food and Drug Administration filed 7 first information reports (FIRs) against the company alleging it sold a banned drug Spasmoproxyvon.The drug, Opioid Dextropropoxyphene, used as a pain killer was banned by the government on May 23. However, the Maharashtra FDA alleges that Wockhardt continued to sell drugs based on the banned product.It also delayed recalling the drug from the market by sending hard copies to its stockists instead of mails or faxes, it adds.Wockhardt, however, is contesting the claims and claims that the FDA itself didn't intimate them about the ban on May 23 and were informed about it only via a public mail on June 10, post which they stopped selling the drug.This latest case will further worry investors as Wockhardt is already battling regulatory issues with the US Food and Drug Administration. It received a warning letter from the US FDA last month in relation to its facility at Waluj in Maharashtra not meeting manufacturing guidelines. The UK drug regulator Medicines and Healthcare Products Regulatory Authority had also earlier identified manufacturing deficiencies and recalled some medicines made by Wockhardt at the plant, where injectables and solid dosages are made.The company has said it will appoint a US-based consultant who will work closely with the Wockhardt team to address the issues raised by the US drug regulator.At 10:00hrs, Wockhardt was still down 5 percent at ia 52-week low of Rs 381.60 on NSE.Also Read: Fresh plea seeks cancellation of Ranbaxy's mfg licence Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
