Wockhardt Falls After Report U.S. Regulator Seeks ClarificationsKetaki Gokhale
Wockhardt Ltd. fell to its lowest level in more than 10 weeks after a newspaper reported the U.S. Food and Drug Administration has sought clarifications regarding its injectables factory in western India.
The shares declined 2.3 percent to 1,712.70 rupees at the close in Mumbai, the lowest level since Jan. 30. The S&P BSE Sensex rose 0.6 percent.
The U.S. FDA contacted Wockhardt about its factory in Aurangabad, in the western state of Maharashtra, after dispatching a team to inspect it last month, the DNA reported on April 13 without saying where it got the information. Wockhardt spokesman Daryl Suchitha didn’t immediately respond to a call made to his office and an e-mail seeking comment.
“There may be concern among investors that this issue could spread to some of the company’s other factories,” said Hitesh Mahida, an analyst at Fortune Equity Brokers (India) Ltd. “And the other question is how long it will take to resolve -- the FDA has become very strict with respect to manufacturing injectables.”