MUMBAI, July 25 India's Wockhardt has
initiated a process to appoint a U.S.-based consultant at its
western India drug factory, its managing director said, after
the U.S. drug regulator issued a warning letter to the factory
over quality compliance issues.
"The consultant has extensive experience and expertise in
CGMP (current good manufacturing practices) and will work with
the Wockhardt team to address issues raised by the U.S. F.D.A,"
Managing Director Murtaza Khorakiwala said in a statement on
Shares in Wockhardt plummeted as much as 20 percent on
Wednesday after brokerage Macquarie downgraded the stock on
concerns that an import ban imposed by the United States over
quality issues would last longer than expected.
In its warning letter dated July 18, the U.S. Food and Drug
Administration said it may withhold approvals for any new
launches Wockhardt was planning for the United States until the
company addressed its concerns about the Waluj plant.
Wockhardt has previously said the U.S. ban would cost the
company about $100 million in sales a year. The manufacturing
plant has also been banned from exporting products to the UK due
to similar reasons.
The stock was down 6.8 percent at 614.50 rupees by 0605 GMT
compared with a 0.26 drop in the benchmark Mumbai market