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One of Wockhardt's Factories Has Been Banned By The FDA


Wockhardt Ltd. has been banned from selling certain medicines to the U.S. from a second factory in India after it was added to a list of restricted facilities by regulators. The stock has dropped more than 14% since new broke out about the situation. Wockhardt's plant in Aurangabad, is its biggest by revenue, and was added to the U.S. Food and Drug Administration's "red list", meaning the companies products can be detained without physical examination. The factory generated $230 million in sales to the U.S. in the early ending in March. The plant is responsible for making copies of Toprol-XL, a heart pill that accounts for !4% of sales. Generic Toprol-XL is one of the products being banned by the FDA. Prakash Agarwal, an equities analyst at CIMB Securities India Pvt. in Mumbai, said "There's going to be a big impact from this... there could be a 25 to 30% shave off on earnings per share."