Shares of Wockhardt Ltd. fell nearly 7% on June 2, snapping a strong five-day rally that had seen the stock surge more than 35% on the back of positive developments related to its novel antibiotic Zaynich. Market participants attributed the decline primarily to profit booking after the stock's rapid appreciation in recent trading sessions.

At around 11:01 a.m., Wockhardt shares were trading at ₹2,002.70 on the NSE, down approximately 7% from the previous close. The decline followed a sharp run-up fueled by regulatory approvals and growing optimism surrounding Zaynich, the company’s breakthrough antibiotic targeting multidrug-resistant bacterial infections.

The selloff occurred despite encouraging comments from Chairman Habil F. Khorakiwala regarding the drug's commercial prospects. According to the company, Zaynich is expected to be launched in the United States within the next four to six months, potentially before the end of 2026 or early 2027. The company estimates the global market opportunity for the drug at $1-2 billion, with the U.S. accounting for roughly 40-45% of the addressable market. Peak annual sales are also projected to reach $1-2 billion.

Khorakiwala highlighted that Zaynich has demonstrated strong efficacy against multidrug-resistant gram-negative infections and achieved success rates of around 90% in nearly 80 compassionate-use cases. Wockhardt is also conducting additional clinical studies to explore the antibiotic’s effectiveness in treating lung infections.

Investor sentiment toward the company has strengthened significantly after the U.S. Food and Drug Administration approved Zaynich, making it the first new chemical entity fully developed and commercialized by an Indian pharmaceutical company to receive such approval. The approval is widely viewed as a landmark achievement for India's pharmaceutical innovation ecosystem.

For the U.S. market, Wockhardt plans to initially supply Zaynich from Europe, with manufacturing based in Italy and active pharmaceutical ingredient and formulation support sourced from a contract manufacturer within the European Union. The company also plans to manufacture the drug in India and expects domestic revenue of around ₹150 crore during the first two years after launch.

While the stock witnessed a short-term correction due to profit-taking, investor focus remains on the commercial rollout of Zaynich and its potential to transform Wockhardt’s long-term growth trajectory.