Wockhardt hit a lower circuit limit of 5% at Rs 381.30 at 11:56 IST on BSE, extending recent fall triggered by media reports that the Maharashtra Food and Drug Administration filed FIRs against the company for selling a banned drug.
Meanwhile, the S&P BSE Sensex was down 234.19 points, or 1.22%, to 18,948.07.
On BSE, 3,267 shares were traded in the counter as against an average daily volume of 2.05 lakh shares in the past one quarter.
The stock was currently trading at its 52-week low level. The stock had hit a 52-week high of Rs 2,166.05 on 12 March 2013.
Wockhadt shares have fallen 53.84% in the preceding ten sessions from a recent high of Rs 826.10 on 23 July 2013.
The stock had underperformed the market over the past one month till 5 August 2013, sliding 56.13% compared with the Sensex's 1.61% fall. The scrip had also underperformed the market in past one quarter, falling 78.81% as against Sensex's 2.01% fall.
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The mid-cap company has an equity capital of Rs 54.79 crore. Face value per share is Rs 5.
According to reports, a total of seven first information reports (FIRs) were filed against Wockhardt in Pune, Kolhapur and Mumbai for selling illegal Spasmo-Proxyvon capsules post its ban.
The FIRs had been lodged under the provisions of Drugs & Cosmetics Act, 1940, and Indian Penal Code 328 on 29 and 30 July 2013 in Kolhapur.
Maharashtra Food and Drug Administration (FDA) had filed these FIRs against the firm the hearing for which was scheduled on Thursday, 1 August 2013, in Mumbai High Court and has now been adjourned till 20 August 2013.
According to reports, the value of drugs sold was Rs 47.15 lakh, which the company sold through 166 invoices to dealers and stockists.
Spasmo-Proxyvon, a popular brand of antispasmodic from Wockhardt, contains Dextropropoxyphene, which was banned by the government on 23 May 2013 for its alleged misuse by drug addicts.
Maharashtra FDA through the FIR stated that Wockhardt sent letters to its stockists and dealers to inform about the ban instead of a faster method of communication like email or fax, which further delayed the process of recall.
Wockhardt on 20 July 2013 said it received a warning letter from United States Food and Drug Administration (USFDA), listing the observations made by it during its earlier inspection of the company's Waluj facility near Aurangabad.
Wockhardt had on 24 May 2013 said that the company received an 'import alert' from USFDA on one of its manufacturing unit located at Waluj. The company at that time said that the impact of the import alert on the revenues is estimated to be in the range of $100 million on an annualised basis.
Wockhardt said that the company continues to cooperate with USFDA to resolve the issues at the earliest. If any additional measures are necessary, the company would take them to squarely address all concerns, Wockhardt said.
Wockhardt unveils Q1 Results on 14 August 2013. The company reported consolidated net profit of Rs 334.76 crore in Q4 March 2013, as against net loss of Rs 191.64 crore in Q4 March 2012. Net sales rose 26.4% to Rs 1485.50 crore in Q4 March 2013 over Q4 March 2012.
Wockhardt is a high-technology intensive global pharmaceutical and biotechnology company with multi-disciplinary and innovative R&D programmes. It has three research centres globally and manufacturing facilities across India, USA, UK and Ireland. The company has a significant presence in USA, Europe and India.
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