Wockhardt slips over 5% as arm receives warning letter from USFDA

NEW DELHI: Shares of Wockhardt slipped over 5 per cent in early trade on Thursday after the drug major on Wednesday said the US health regulator had issued a warning letter to its step down subsidiary Morton Grove Pharmaceuticals Inc.

The scrip was trading 5 per cent down at Rs 713.60 around 9.18 am (IST). Shares of the company opened at Rs 715 and touched a high and low of Rs 720 and Rs 701, respectively, in trade so far. Benchmark BSE Sensex was up 123.33 points, or 0.43 per cent, at 29,107.82.

"The United States Food and Drug Administration (USFDA) has issued a warning letter to Morton Grove Pharmaceuticals Inc, USA, a stepdown subsidiary of the company," Wockhardt said in a filing to BSE.

"This would mean that current portfolio of the company will continue to be made available in the market. However, new approvals will be withheld till resolution," it added.

The company, with the help of the consultants, has already initiated appropriate measures since last several months to address the issues raised by USFDA.