Wockhardt tanks 7% on FDA’s warning letter to US arm Morton Grove 

Pharmaceuticals, a subsidiary of the firm, received a warning letter from the US drug regulator. The move is a blow to the company as it struggles with regulatory non-compliance. Wockhardt tanked nearly 7 percent intraday on Thursday as investors turned bearish after the company’s US arm received a warning letter from the US drug regulator. The US Food and Drug Administration issued a warning letter to Morton Grove Pharmaceuticals, a stepdown subsidiary of the company in Illinois, US. “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 told the exchanges in a notification on Wednesday. 

 The warning letter comes as a blow to the company, which was struggling with issues of regulatory non-compliance. Three plants of Wockhardt in India are already under an import ban in the US. Its formulations units at Chikalthana and Waluj in Maharashtra have been under the USFDA’s import alert since 2013, while its bulk drug plant at Ankleshwar in Gujarat was issued an import alert in August. The stock has seen weak movements in the recent past, posting a fall of over 6 percent in the past three days. At 09:21 hrs, the stock was quoting at Rs 711.50, down Rs 39.60, or 5.27 percent on the BSE. It touched an intraday high of Rs 720.00 and an intraday low of Rs 701.00.

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