Divi's Labs surges 6% on successful USFDA inspection of Unit-2

The stock trading at its highest level since December 23, 2016, has outperformed the market by surging 47% in past one month, as compared to 4% rise in Sensex.

Divi’s Laboratories has moved higher by 6% to Rs 915 on BSE in intra-day trade after the company announced that all the previous observations by US drug regulator regarding Unit-2 of its Visakhapatnam facility have been confirmed as completed and resolved.

The stock hit nine-month high and was trading at its highest level since December 23, 2016 on BSE. It outperformed the market by surging 47% in past one month, as compared to 4% rise in the S&P BSE Sensex.

“Unit-2 has been inspected by the U.S. Food and Drug Administration (US-FDA) from September 11 to September 19, 2017. This inspection was for full cGMP and verification of all corrective actions proposed against the previous Inspection observations,” Divi’s Laboratories said in a BSE filing.

The company announced that all previous observations have been confirmed as completed and resolved, it added.

On completion of this inspection, Divi's Laboratories has received a Form 483 citing six observations which are procedural and the company will be responding to these within the stipulated time.

At 10:47 AM; the stock was up 5% at Rs 908 on BSE, as compared to a marginal 0.03% rise in the Sensex. A combined 7.47 million shares changed hands on the counter on BSE and NSE so far.