Wockhardt Shares Drop 7% as Investors Book Profits Following Upbeat Earnings Outlook

Wockhardt Shares Decline 7% as Investors Book Profits

Shares of Wockhardt Ltd. declined 7% on Tuesday, snapping a five-session winning streak as investors booked profits after the recent rally in the stock. At 11:01 am, the Wockhardt stock was trading at Rs 2,002.70 on the NSE, down Rs 150.20, or 6.98%.

The decline came despite positive commentary from Chairman Habil F Khorakiwala on the company's novel antibiotic Zaynich. Khorakiwala estimated the global market opportunity for Zaynich at $1-2 billion, with the US accounting for 40-45% of the potential sales. Peak sales for the drug are also projected in the $1-2 billion range, while patent protection extends until 2038.

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Khorakiwala said Zaynich has demonstrated strong efficacy against multi-drug resistant gram-negative infections and has recorded a success rate of about 90% across nearly 80 compassionate-use cases. The company is also conducting clinical trials to evaluate the drug's use in treating lung infections.

Wockhardt plans to supply Zaynich to the US from Europe initially, with manufacturing taking place in Italy and API and formulation support coming from a contract manufacturer in the European Union. The drug will also be manufactured in India, where the company expects revenue of around Rs 150 crore in the first two years.

The company added that its recently launched antibiotics EMROK and EMROK O are witnessing strong growth in the domestic market.