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Divis Labs slumps after USFDA issues import alert on Vizag unit

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Capital Market
Last Updated : Mar 21 2017 | 3:04 PM IST

Divis Laboratories fell 17.34% to Rs 653.60 at 10:14 IST on BSE after the US drug regulator issued an import alert at the company's Visakhapatnam unit-II.

The announcement was made before trading hours today, 21 March 2017.

Meanwhile, the S&P BSE Sensex was down 8.10 points, or 0.03% to 29,510.64.

On the BSE, 13.02 lakh shares were traded in the counter so far, compared with average daily volumes of 3 lakh shares in the past one quarter. The stock had hit a high of Rs 711.65 so far during the day. The stock had hit a low of Rs 635 so far during the day, which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 1,380 on 16 September 2016.

The stock had outperformed the market over the past one month till 20 March 2017, rising 5.71% compared with 3.69% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 30.70% as against Sensex's 12.20% rise.

The large-cap company has equity capital of Rs 53.09 crore. Face value per share is Rs 2.

Divis Laboratories announced that the United States Food and Drug Administration (USFDA) has issued an Import Alert 66-40 on 20 March 2017 on the products manufactured at the company's Unit-II at Visakhapatnam, Andhra Pradesh. The agency has exempted the 10 products namely Levetiracetam, Gabapentin, Lamotrigine, Capecitabine, Naproxen Sodium, Raltegravir potassium, Atovaquone, Chloropurine , BOC core succinate and 2, 4-wing active ester, from the import alert, it added.

Divis Laboratories said the company, along with third party consultants, is currently working to address the concerns of the USFDA and is making all efforts to fully meet the compliance requirements.

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Divis Laboratories' net profit rose 8.7% to Rs 268.32 crore on 13.4% increase in net sales to Rs 973.44 crore in Q3 December 2016 over Q3 December 2015.

Divis Laboratories is primarily engaged in the manufacture of active pharmaceutical ingredients (APIs) & intermediates for generics; custom synthesis of API's and advanced intermediates for discovery compounds for pharma giants; building blocks for peptides; building blocks for nucleotides; carotenoids; and chiral ligands.

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First Published: Mar 21 2017 | 10:05 AM IST

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