Wockhardt tumbles owing to regulatory obstacle

Wockhardt declined 3.57 per cent in early trade, and is trading at Rs 731.5 on an intraday basis. The stock is trading under pressure as Ireland’s health regulatory body has inspected its Aurangabad facility.

The Health Products Regulatory Authority of Ireland (HPRA) has inspected the Company's Shendra, Aurangabad facility. The regulatory authority has recommended the renewal of certificate based on the general compliance with the principles and guidelines of Goods Manufacturing Practices (GMPs).

On financial front, Wockhardt's revenue increased 7.35 per cent to Rs 996 crore in Q3FY17 as compared to same period in previous financial year. The company posted operating profit of Rs 18.12 crore in Q3FY17 against operating profit of Rs 71.75 crore in Q3FY16. It posted net loss of Rs 53.91 crore in Q3FY17 while net profit of Rs 72 crore in Q3FY16.

Going forward, the investors should watch, how Wockhardt will be able to fulfill the observatory requirements put forward by the regulatory body.

The stock price of Wockhardt has dropped almost 24 per cent in last one year.