Shares of drug firm Jubilant Life Sciences today fell 5 per cent, eroding Rs 146 crore from its market capitalisation after the US health regulator issued a warning letter for violation of manufacturing norms at its facility in Canada.
According to a regulatory filing, Jubilant HollisterStier General Partnership (JHS) located at Kirkland, Quebec, Canada, has been issued a warning letter (WL) by US Food and Drug Administration (FDA) identifying significant violations of current good manufacturing practices (cGMP) regulations.
Following that the company scrip tanked 8.05 per cent to an intra-day low of Rs 170.60. At the end of trade, the scrip recovered some lost ground and closed at Rs 176.45, down 4.90 per cent from its last closing price.
Hence, the market capitalisation of the company declined by Rs 146 crore to Rs 2,810 crore from Rs 2,956 crore in the previous trading session.
As required by FDA, JHS will respond to this letter by March 15, 2013. The USFDA has specified that until all corrections have been completed, it may withhold approval of new applications or supplements listing JHS as the drug product manufacturer.