Shares in Wockhardt slipped into the red after a positive start on the BSE, jeopardizing a nine-day rally. The drug maker has seen steady gains in its share prices over the last month, rising 37 per cent against 3.5 per cent gains on the broader Sensex benchmark.
The stock saw selling pressure Tuesday on news that Dr Reddy's has received the U.S. Food and Drug Administration approval for 100/200 mg generic Toprol XL drug used in the treatment of angina and high blood pressure.
Wockhardt has 20 per cent market share in Toprol XL in the US, but the drug contributes 40-45 per cent of Wockhardt's overall sales in the US. Analysts fear that once Dr Reddy's launch their version of the generic drug, there will be price erosion, hurting Wockhardt's margins.
The stock traded 2.2 per cent lower at Rs 1,270.10 on the BSE at 09.54 a.m., while the Sensex was up 0.5 per cent at 17,778.
The news masked another positive development for Wockhardt, which has received approval from the U.S. Food and Drug Administration to sell Entacapone tablets, which are used in treatment of Parkinson's disease.
Entacapone, which will be launched on September 30 with a 180-day exclusive period, is the generic name for the brand Comtan, owned by Orion Corp.
(With inputs from Thomson Reuters)
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