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.