Wockhardt tanks 20% on US FDA import alert

Moneycontrol Bureau

Shares of Mumbai-based Wockhardt slumped 20 percent on Thursday after the US Food and Drugs Administration issued an import alert on one of the pharma company's manufacturing facility at Aurangabad in Maharashtra. The import alert posted on FDA website is dated May 22, 2013. An import alert means detention of drugs without physical examination from firms, which have not complied with current good manufacturing practises, the drug regulator states. The US FDA had issued a 483 form through a routine course of inspection of one of its facilities in Aurangabad in April. A form 483 is issued when the FDA observes any violation from standard manufacturing practices. Wockhardt Chairman Habil Khorakiwala confirmed that the FDA had put an import alert on one of its facilities. "We estimate that it would impact our business by USD 100 million on an annualised basis," he told PTI. He further informed the news agency that the company won't be able to export products to the US from the facility, which makes injectables as well as solid dosages. The production will be shifted to a nearby facility to minimise the impact, he added. Wockhardt shares closed down 20 percent (lower circuit limit) at Rs 1,313.80 on NSE. The stock more than trebled in financial year 2013. Since April 1, however, the stock has corrected 34.5 percent. Also Read: Ranbaxy plunges 10% on reports Indian govt orders probe