HindustanTimes Mon,22 Dec 2014

Wockhardt Q1 net profit falls 94% on plant bans

Reuters  Mumbai, August 12, 2014
First Published: 15:18 IST(12/8/2014) | Last Updated: 16:22 IST(12/8/2014)

Generic drugmaker Wockhardt Ltd on Tuesday said its quarterly net profit plunged 94%, as US Food and Drug Administration bans on its manufacturing plants continued to take a toll.

Wockhardt's April-June net profit was Rs. 19.95 crore ($3.26 million), compared with Rs. 323 crore a year earlier.

Net sales slumped 27% to Rs. 991 crore.

The United States 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 FDA 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 United States.

Wockhardt shares fell 5% to Rs. 674 by 1157 IST on Nifty that was up 0.54%.

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