Wockhardt falls over 5% as US unit gets FDA warning letter

The stock dipped nearly 7% to Rs 701 on the BSE in early morning trade

Wockhardt dipped nearly 7% to Rs 701 on the BSE in early morning trade after the pharmaceutical company said that its step-down unit in the US, Morton Grove Pharmaceuticals Inc., has received a warning letter from the US Food and Drug Administration (FDA).

“US Food and Drug Administration ('USFDA') has issued a warning letter to Morton Grove Pharmaceuticals Inc., USA, a step-down subsidiary of the company,” Wockhardt said in a regulatory filing.

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.

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

The stock had outperformed the market in past two weeks, surged 14% as compared to 3% rise in the S&P BSE Sensex till Wednesday.

At 9:25 am; the stock was down 5% at Rs 716 against 0.34% rise in the benchmark index. A combined 1.72 million shares changed hands on the counter on the BSE and NSE so far.