Wockhardt shares plummet 20 pc, stock hits lower circuit

MUMBAI: Shares of Wockhardt today nosedived by 20 per cent, wiping off Rs over 3,600 crore in investor wealth, after the company said import alert issued by US health regulator on its manufacturing facility near Aurangabad could impact the company's business by $ 100 million.

Wockhardt's scrip tumbled by 20 per cent to Rs 1,315.25 -- its lowest trading permissible limit for the day on the BSE.

At NSE, the stock tanked 20 per cent to Rs 1,313.80. The market value of the drug firm fell by Rs 3,603 crore to Rs 14,413 crore.

"USFDA has put an import alert on one of our facilities, at Waluj, near Aurangabad. We estimate that it would impact our business by $ 100 million on an annualised basis," Wockhardt Chairman Habil Khorakiwala said.

He added till the time USFDA lifts the import alert, the company would not be able to export products to the US market from the facility, which produces injectables as well as solid dosages.

The US health regulator had issued an 'import alert' on drug firm Wockhardt's facility at Aurangabad in Maharashtra saying it was not meeting the manufacturing norms.

The import alert, 'detention without physical examination of drugs from firms which have not met drug GMPs', is issued when an FDA inspection reveals that a firm is not operating in conformity with current good manufacturing practises (GMP's), United States Food and Drug Administration said on its website.

Meanwhile, in the broader market, the BSE benchmark Sensex ended at 19,674.33, down 387.91 points.