Divi's Labs surges 21% as USFDA to lift import alert for Visakhapatnam unit

The stock surged 21% to Rs 1,117 on the BSE in early morning trade on back of nearly four-fold jump in trading volumes.

Divi’s Laboratories surged 21% to Rs 1,117 on the BSE in early morning trade after the company announced that the US drug regulator will lift import alert for its Visakhapatnam unit.

“The company has been informed by the U.S. Food and Drug Administration (US-FDA) that it will be lifting the Import Alert 66-40 and moving to close out the Warning letter issued to the company's Unit-II at Visakhapatnam,” Divi’s Laboratories said in a regulatory filing.

On September 20, 2017, the company said that all the previous observations by USFDA regarding Unit-2 of its Visakhapatnam facility have been confirmed as completed and resolved.

In past three months, the stock zoomed 60% as compared to 3% rise in the benchmark indices the S&P BSE Sensex and Nifty50.

At 09:20 AM; the stock was up 20% at Rs 1,105 on the BSE, as compared to 0.08% rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly four-fold with a combined 2.56 million shares changed hands in first five minutes of trade on the NSE and BSE.