Wockhardt Shares Jump More Than 11% After Landmark Approval - Here's What You Need To Know

Wockhardt Ltd. Soars in Trade After Receiving USFDA Approval for Zaynich Antibiotic

The shares of Wockhardt Ltd. have experienced a significant surge in trade on Monday, marking a pivotal moment not just for the company but for the Indian pharmaceutical sector as a whole.

Key Highlights:

• Wockhardt becomes the first company to receive USFDA approval for its novel antibiotic, Zaynich.
• The stock has gained more than 11.25% in value following the announcement.
• The scrip is currently trading at Rs 1,363, with an intraday high of Rs 1,384.

The approval from the USFDA marks a significant milestone for Wockhardt, as it highlights the company's ability to innovate and develop advanced anti-infective solutions. The FDA has also granted Zaynich a fast-track status, an expedited review process typically reserved for drugs that show promise in treating serious conditions and addressing unmet medical needs.

About Zaynich:

• Zaynich is a combination drug that merges two components.
• During clinical trials, the drug has shown 97% efficacy against serious carbapenem-resistant infections, considered among the hardest to treat.

Quote from Wockhardt: “The FDA’s acceptance of the Zaynich NDA is a historic and proud moment for the organisation and for India. It reaffirms our commitment to developing advanced anti-infective solutions for the world and demonstrates what Indian science and innovation can achieve on the global stage."

Market Reaction:

The approval from the USFDA may open up significant market opportunities for Wockhardt in the United States, one of the biggest pharmaceutical markets in the world. While innovation has been a key theme for Wockhardt, the company's stock has not particularly wooed investors in the recent past, with a year-to-date decline of 2.74%.

Technical Analysis:

Wockhardt is currently trading at a relative strength index of 54, suggesting neutral market sentiment.