Wockhardt shares slump; sales of pain reliever suspended

Shares in Wockhardt Ltd fell 10 per cent to their lowest close since August 2012 after India's Health Ministry suspended the sale and distribution of pain-relieving drug Dextyropropoxyphene.

Wockhardt makes the drug available in India under the brand name of Proxyvon, according to investment bank Macquarie.

Although the notification was made in India's official gazette on May 23, market players said it only got noticed and then circulated in markets on Tuesday.

Macquarie said in a note the sales suspension of the drug would impact Wockhardt's earnings per share in FY14 by around 4 per cent, given Proxyvon had annual sales of around Rs 150 crore.

The investment bank, however, added that correction in company's stock price was overdone and it maintained its "outperform" rating and a target price of Rs 1,680.

Wockhardt could not be reached immediately for a comment despite several attempts from Reuters.

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