Wockhardt shares drop nearly 7% after USFDA warns subsidiary arm

Shares of Wockhardt on Thursday fell sharply by nearly 7% after the company said the US health regulator has issued a warning letter to its step down subsidiary Morton Grove Pharmaceuticals Inc.

After a weak opening, shares of the company further went down by 6.67% to Rs 701 on BSE. On NSE, shares of the company slipped 6.53% to Rs 701. "The United States Food and Drug Administration (USFDA) has issued a warning letter to Morton Grove Pharmaceuticals Inc, USA, a stepdown subsidiary of the company," Wockhardt said in a filing to BSE on Wednesday.

The company, however, did not provide any details about the reasons for the issuance of warning letter and when it was issued. "This would mean that current portfolio of the company will continue to be made available in the market. However, new approvals will be withheld till resolution," it said. "The company, with the help of consultants, has already initiated appropriate measures since last several months to address the issues raised by USFDA," Wockhardt added.