But many of the analysts are not surprised by this move. Why? Because the Chikalthana plant was the same one that has 483 from the USFDA and those harsh observations came to light a few weeks ago.
It's yet another set back for Wockhardt . This time, however, it’s come from the UK's health regulator -- the Medicines and Healthcare Products Regulatory Agency (MHRA) -- that has withdrawn its good manufacturing certification from the Chikalthana facility in Aurangabad.
But many of the analysts are not surprised by this move. Why? Because the Chikalthana plant was the same one that has 483 from the USFDA and those harsh observations came to light a few weeks ago. And according to the analysts, going by the observations such as unhygienic toilets, soiled uniforms and cluttered perimeters a few of the 16 that the USFDA highlighted in their report it is no surprise that another developed market health regulator clamped down on the plant.
But what does this mean for Wockhardt? Financially, it wouldn’t be a huge dampener as yet according to analysts but they need more clarity since a few drugs will still allowed to be supplied to prevent shortage. As per analysts back of the hand estimates indicate the Chikalthana plant contributes around 12-3 million pounds and off this around 6-7 million pounds of sales could see an immediate impact. But, the sentimental impact for Wockhardt is greater.
Remember, this is the same stock that had a dream run in 2012 rising over 400 percent but came crashing down to current levels from highs of over Rs 2000 because of the mounting regulatory concerns such as an import alert on the Waluj plant, 483 on the Chikalthana plant and the latest salvo from the UKMHRA.
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Economy turning for sure but cant say for mkts: DSP