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Last Updated : Dec 08, 2016 12:29 PM IST | Source: Moneycontrol.com

Divis Labs tanks 6% on USFDA form 483 to Visakhapatnam unit II

Hyderabad-based healthcare company Divis Laboratories shares plunged more than 6 percent intraday Thursday after Visakhapatnam unit received form 483 from the US health regulator.

 
 
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Hyderabad-based healthcare company Divis Laboratories shares plunged more than 6 percent intraday Thursday after Visakhapatnam unit received form 483 from the US health regulator.


"The US Food and Drug Administration has issued a form 483 with 5 observations to company's unit-II at Visakhapatnam, Andhra Pradesh," the company said in its filing.

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The company will respond to the USFDA letter within the time permitted, it said.


The US health regulator had an inspection of the plant during November 29 to December 6, 2016.

The recovery in share price from day's low indicated that these observations may get resolved by the company soon.


Religare, which has a buy rating on the stock, says Divis is known for its strong manufacturing practices and has never been pulled up by the FDA for non-compliance, though it does not have access to the 483 letter yet.


Unit-II includes the export-oriented facility, pharma SEZ and DSN SEZ and accounts for around 70 percent of Divis’ overall business and more than 75 percent of its overall capacity. It also houses the company’s nutraceutical plant.


In FY16, the US accounted for 32 percent of overall sales and most of these came from Unit-II. Divis is currently expanding this facility at an estimated cost of around Rs 250 crore.


At 10:25 hours IST, the stock was quoting at Rs 1,128.00, down Rs 35.60, or 3.06 percent on the BSE.

Posted by Sunil Shankar Matkar



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First Published on Dec 8, 2016 11:00 am
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