Competition or legal woes? Wockhardt plunges to 1-year low
The stock has lost 36 percent in the last two weeks and 29 percent this week alone.
Wockhardt took a major beating today and touched its 52-week low of Rs 271.75 after US-based pharma company Mylan Inc, the world's third largest seller of generic drugs, got approval to sell generic Toprol XL. This drug is mainly used to treat angina and high blood pressure.
This is bad news for Wockhardt as generic Toprol is one of the key growth drivers for its product portfolio. Wockhardt has a 17 percent market share for generic Toprol XL and 40-45 percent of its US sales comprise of Toprol XL. This approval has increased competition for the company and it needs better approvals to off set its impact.
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Currently the stock is trading 9.3 percent lower at Rs 273.85. The stock has lost 36 percent in the last two weeks and 29 percent this week alone.
But this is not the only issue that Wockhardt is grappling with. It is also facing legal trouble after it defaulted on the re-payment of its $110-million FCCBs in 2009. Under the new agreement, Wockhardt will pay Rs 215 crore in three phases by next March. The company has also filed an anti-suit against the bondholders who are demanding money.This anti suit will only prohibit multiple law suits in multiple courts and has no bearing on the payment it has to make.The second case is with Lehman Brothers over sale of its nutrition business.
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