Panacea Biotech, which had closed yesterday at Rs.194.15 within a few minutes of opening hit the 5% LC of the day at Rs.184.45 where it currently remains frozen.
Though the company has not issued any statement to this regard to the exchanges, data on the US FDA shows that its Baddi facility has received a warning letter from the US drug regulator. This warning letter is on account of many violations of Current Good Manufacturing Practices (CGMP) regulations.
Until these violations are cleared, the FDA might withhold approval for any new drug applications from the company.
It has given the company 15 days to respond.