The shares of the pharmaceutical company specializing in the pharmaceutical and biotechnology sectors, focusing on the research, development, manufacturing, and marketing, are in focus as the stock has rallied upto 19 percent in the day’s trade. In this article, let’s explore the reason behind the rally.
With a market capitalization of Rs. 25,068.27 crores on Monday, the shares of Wockhardt Ltd rose by 19 percent, reaching a high of Rs. 1589.50 per share compared to its previous closing price of Rs. 1335.45 per share.
Reason for the Rally
Wockhardt’s rally on Monday comes on the back of a recent clarification from the White House, which suggested that countries that have an existing trade deal with the US will be exempted from the pharma tariff.
When the U.S. announced new tariffs (import taxes) on medicines, it wasn’t clear at first whether these new charges would override existing trade deals with countries like the EU, Japan, and the UK.
However, a U.S. official later told Bloomberg that imports from the EU would not face more than a 15 percent tariff, which is the limit set by their current trade agreement. The same applies to Japan; its tariffs will follow what’s already agreed in the trade pact.
An EU spokesperson said this agreement acts like a “safety net,” making sure European drug companies won’t face higher taxes. The EU is currently the only partner with such clear protection under this U.S. policy.
Wockhardt, the Indian pharmaceutical company, is expected to benefit from recent developments due to its strong manufacturing base in Europe. The company had earlier acquired the French firm Negma to boost its capabilities in formulations and APIs. It also operates an injectable manufacturing facility in North Wales, UK, strengthening its European footprint.
With operations spanning the USA, UK, Ireland, Switzerland, Mexico, Russia, and more, it has research facilities in both India and the UK, and a manufacturing unit in Ireland. Nearly 78 percent of the company’s global revenue comes from international markets, highlighting its significant presence outside India, especially in Europe.
Wockhardt expects its new drugs, including Zaynich and Miqnaf for multi-drug resistant infections, which have been manufactured in Europe, to significantly boost revenue from FY27 onwards. The company is pivoting towards novel drug development and re-engineering to focus on newer therapies.
Financials & Others
The company’s revenue declined by 0.14 percent from Rs. 739 crore to Rs. 738 crore in Q1FY25-26. Meanwhile, the Net loss increased from Rs. 16 crore to Rs. 108 crore during the same period.
Wockhardt Ltd. is a leading global pharmaceutical and biotechnology company headquartered in Mumbai, India, recognized for its research-driven approach and diverse product portfolio. The company develops, manufactures, and markets pharmaceuticals, biopharmaceuticals, active pharmaceutical ingredients, vaccines, and branded generics, with a strong international presence.
It operates numerous state-of-the-art research centers and manufacturing plants and is committed to healthcare innovation, especially in biosimilars and diabetes treatments, aiming to deliver affordable, high-quality medicines for better health worldwide.
The company has a strong global footprint with 12 manufacturing facilities and two R&D centers located in India and the UK. In FY25, the UK contributed 39 percent to its sales, followed by emerging markets and India at 23 percent each, and Ireland (and other EU countries) at 12 percent.
Written by Sridhar J
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