Divi's Labs gains as USFDA closes out warning letter for Vizag unit

Thus far in the current month, Divi's Labs outperformed the market by gaining 23% after the company on November 2, said that the USFDA will lift import alert for its Visakhapatnam unit.

Divi’s Laboratories rallied 8% to Rs 1,090 on the BSE in early morning deal after the pharmaceutical company said that the US health regulator has completed evaluation of company’s corrective actions in response to FDA’s warning letter dated April 13.

“Further to our letter dated 2nd November, 2017, Divi's Laboratories  has been informed by the U.S. Food and Drug Administration (US-FDA) that the Agency has completed evaluation of the Company's corrective actions in response to FDA's Warning Letter: 320-17-34 dated April 13, 2017,” the company said in a regulatory filing.

We also note from the update on FDA's website that they have closed-out the warning letter, it added.

Thus far in the month of November, Divi’s Labs has outperformed the market by gaining 23% after the company on November 2, announced that the USFDA will lift import alert for its Visakhapatnam unit. On comparison, the S&P BSE Sensex was down 0.09% during the period.

At 09:52 AM; the stock was trading 3% higher at Rs 1,038 against 0.20% decline in the benchmark index. A combined 1.4 million shares changed hands on the counter on the NSE and BSE so far.