Wockhardt shares plunge over 9% on import alert from FDA
Though the details of FDAs observations were not released publicly.
Wockhardt shares declined upto 14% during early session on BSE on Monday after the company received US Food and Drugs Administration (FDA) import alert for its third plant in Ankleshwar for violating goods-manufacturing norms.
At 1038 hours the shares of the company were trading at Rs 920 per piece, down 9.33% on BSE.
On Friday, FDA provided the data which stated that the company's third plant has got an import ban from the regulatory body.
Though the details of FDA's observations were not released publicly.
FDA on its official website said that the reason for issuing alert is when an FDA inspection has revealed that a firm is not operating in conformity with current good manufacturing practices (GMP's).
This is not the first time, the company has received import alert. In 2013, two of its plants in Aurangabad got the alert from FDA.
In FY16, the share of company's US business in terms of sales dropped to 22% because of import bans. The Ankleshwar plant contributes nearly 10-15% of US sales (Rs 964 crore in FY16), Business Standard reports.
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