Wockhardt earnings hit by US FDA ban, Q1 profit plunges 94% to Rs 19.95 cr

Generic drugmaker Wockhardt on Tuesday said its quarterly net profit plunged 94 percent, 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 percent to Rs 991 crore.

 Wockhardt earnings hit by US FDA ban, Q1 profit plunges 94% to Rs 19.95 cr

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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 percent of Wockhardt's sales in the United States.

Wockhardt shares fell 5 percent to 674 rupees by 0627 GMT on Nifty that was up 0.54 percent.

Reuters

Updated Date: Aug 13, 2014 07:35:22 IST