Wockhardt lost 2.25% to Rs 468 at 13:08 IST on BSE after the firm said it has received a communication from UKMHRA, whereby the agency has decided to withdraw the previously issued GMP Certificate to the firm's manufacturing facility.
Meanwhile, the S&P BSE Sensex was down 41.74 points or 0.2% at 20,852.15.
On BSE, 2.64 lakh shares were traded in the counter as against average daily volume of 1.69 lakh shares in the past two weeks.
The stock was volatile. The stock lost as much as 4.18% at the day's low of Rs 458.70 so far during the day. The stock rose as much as 1.4% at the day's high of Rs 485.50 so far during the day.
Wockhardt said that the company has received a communication from the Medicines and Healthcare Products Regulatory Agency, United Kingdom (UKMHRA), whereby the agency has decided to withdraw the previously issued GMP Certificate to the company's manufacturing facility situated at Kadaiya, Nani Daman and will be issuing a restricted GMP Certificate to the site along with a statement of noncompliance for the said site.
Wockhardt said that in order to avoid market shortage of medically essential products, the GMP certificate will be conditioned to permit continued manufacturing and QC testing of 'critical' products in situations where it has been agreed by the national competent authority or EMA (as appropriate) that there is no feasible alternative in the market concerned. The scope of the statement of non-compliance is therefore limited to medicinal products considered noncritical to public health, it added. Accordingly, the company shall be able to manufacture and supply from the said facility certain medicinal products critical to public health, Wockhardt said.
The impact of the same on existing business will only be known once the company receives further communication from UKMHRA, Wockhardt said. The company doesn't manufacture any products for the US market at the said manufacturing facility, it added.
On a consolidated basis, Wockhardt's net profit fell 14.5% to Rs 323.31 crore on 1.3% growth in net sales to Rs 1358.37 crore in Q1 June 2013 over Q1 June 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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