Wockhardt's net profit witnesses steep fall in Q1

The ban by US Food and Drug Administration (USFDA) on Wockhardt’s manufacturing plants is taking a toll on its performance with the company reporting a 94% dip in net profit for the quarter ending June 2014, according to a Reuters report. The drug maker’s April-June net profit was Rs 19.95 crore, compared with Rs 323 crore a year earlier. Its net sales was also down by 27% to Rs 991 crore.
 
The US is Wockhardt's biggest market and the FDA has banned the import of generic drugs from two of the company's plants in India, citing quality lapses in the manufacturing process. “In May, the company said the USFDA had also expressed concerns over production processes at its Chicago-based Morton Grove Pharmaceuticals unit, which accounts for more than 50% of Wockhardt's sales in the US,” said the Reuters report.