Divis Labs extend gains from Tuesday; other pharma stocks rally too
Sun Pharmaceuticals and Dr Reddy’s Laboratories gained around 2 percent intraday.
Divis Laboratories extended its gains from the previous session, jumping around 4 percent intraday.
Investors continued to bet on hopes of better outcome from its unit’s inspection by the US FDA.
The stock ended 12 percent higher on Tuesday after a CNBC-TV18 report stated, the company has re-invited US FDA for reinspection of Unit-II, which comprises of60-65 percent of total sales for the company. From that, 32 percent of the sales is to the US.
It must be noted that the company’s Unit-II has an outstanding import alert, which it had received in March 2017.
Meanwhile, the company’s Unit-I is also pending a re-inspection from the US drug regulator. It was last inspected in June 2014.
Simultaneously, the rally spilled over to a couple of other stocks as well. Sun Pharmaceuticals and Dr Reddy’s Laboratories gained around 2 percent. The latter gained after it sad that its wholly owned arm Aurigene Discovery Technologies plans to initiate phase II clinical trials of oral small molecule CA-170 that targets cancer. The trials will be conducted at various sites in India, Dr Reddy's said in a filing to BSE.At 10:23 hrs Dr Reddys Laboratories was quoting at Rs 2,195.80, up Rs 31.00, or 1.43 percent on the BSE. Sun Pharmaceutical Industries was quoting at Rs 489.50, up Rs 6.00, or 1.24 percent, meanwhile Divis Laboratories was quoting at Rs 821.80, up Rs 17.00, or 2.11 percent.