Divi's Laboratories falls as Vizag unit gets five observations from USFDA

The stock dipped 6% to Rs 1,091 after USFDA has issued form 483 with five observations against its unit at Visakhapatnam of Andhra Pradesh.

Divi’s Laboratories has dipped 6% to Rs 1,091 on the BSE in early morning trade after the company said the US Food and Drug Administration (USFDA) has issued form 483 with five observations against its unit at Visakhapatnam of Andhra Pradesh.

“The company's Unit-II at Visakhapatnam, Andhra Pradesh has had an inspection by the US-FDA from November 29, 2016 to December 06, 2016. The company has been issued a form 483 with 5 observations and these shall be responded within the time permitted,” Divi’s Laboratories said in a BSE filing.

Form 483 relates to certain critical observations issued to a company at the end of an inspection when if there were any violations of the Food Drug and Cosmetic Act and other related acts of the US Government.

At 09:52 am; the stock partially recover its from intra-day losses and was down 2.5% at Rs 1,135 as compared to 1.2% rise in the S&P BSE Sensex. A combined 486,171 shares changed hands on the counter on the BSE and NSE so far.