Jubilant Life Sciences had breached the lower circuit yesterday and today, though it has not hit the lower circuit, it remains in the red. The stock is currently down almost 5% at Rs.120, with an intra day low at Rs.116.

The stock continues to react to the news it announced yesterday morning - it has received a warning letter from the USFDA over violation of manufacturing norms at its manufacturing plant, Jubilant HollisterStier, LLC (JHS) located at Spokane, Washington state. JHS-Spokane will respond to this warning letter on or before December 12, 2013, will identify corrective actions already been completed as well as some pending corrective actions to ensure on-going cGMP (current good manufacturing practice) compliance.

The US FDA has stated clearly that until all corrections have been completed and that they have confirmed correction of the violations and firm compliance to cGMPs, FDA may withhold approval of new applications or supplements listing JHS-Spokane as the drug product manufacturer.