Shares of Jubilant Life Sciences tumbled over 7 per cent, hitting four-month low, in intra-day trade on Tuesday. The stock touched an intra-day low of Rs 673.70, down Rs 51.65, or 7.12 percent, on the Bombay Stock Exchange.
In the last five trading session, shares of the company declined as much as 22.93 per cent on the BSE since March 19, which was Rs 843.35. Paring some of early losses, shares of the company ended at Rs 686, down 5.37 per cent, against previous closing price of Rs 724.95.
According to data available with exchange, as much as 1.44 lakh shares changed hand over the counter today as compared to two-week average of 2.29 lakh shares.
On the National Stock Exchange, the stocks of the company closed trade at Rs 678.90 apiece, down 6.07 per cent. It touched an intra-day high and low of Rs 725.70 and Rs 678, respectively.
On March 21, the drug maker said the United States Food and Drug Administration (USFDA) classified API manufacturing facility, in Nanjangud, Mysore, as Official Action Indicated (OAI). The US drug regulator, which conducted the inspection from December 10-18, 2018, stated that the facility might be subject to a cGMP regulatory or enforcement action based on this inspection, and that FDA could withhold approval of any pending applications or supplements in which this facility is listed.
The company had said that FDA's announcement will not have an impact on its revenues from operations of this facility.
"As per the agency's internal procedures, the company can engage with the agency within 40 days to seek to get the decision downgraded from the OAI classification. In that regard, Jubilant is in the process of sending a further update to USFDA of its corrective actionsregarding the agency's inspectional observations from December 2018," Jubilant Life Sciences said.
Earlier this month, the USFDA issued a warning letter for the company's Roorkee facility. If the company does not implement the necessary corrective actions, the agency may withhold approval of any new applications or supplements till the company addresses all issues raised by the agency. US revenues from the facility is about 4 per cent of the total revenues of the company.
Edited by Chitranjan Kumar