Divi’s Labs plunges 17% on US FDA import alert on Vizag unit
The US Food and Drug Administration issued the import alert for the company’s Visakhapatnam unit-II, which contributes 60-65 percent to total sales of the firm.
Shares of Divi’s Laboratories fell 17 percent intraday on Tuesday as investors turned bearish on the stock following an import alert by the US drug regulator.
The United States Food and Drug Administration (US FDA) issued an import alert for Divi’s Laboratories’ Visakhapatnam unit-II. The plant contributes 60-65 percent to total sales and 20-21 percent to US sales.
An import alert from the regulator means that products from the facility meant for imports can be refused without a complete physical examination.The stock has lost over 13 percent in the past one month, while its three-day stood at 15 percent. At 09:19 hrs, the company’s stock was quoting at Rs 658.15, down Rs 132.55, or 16.76 percent, on the BSE. It touched a 52-week low of Rs 645.00.