Divis Labs tanks 20% after USFDA issues import alert on Vizag unit

The stock tanked 20% to Rs 635, also its 52-week low on BSE in intra-day on back of heavy volumes.

Shares of Divis Laboratories tanked 20% to Rs 635, also its 52-week low on BSE in early morning trade, after the company said US drug regulator issued an import alert on the company’s Visakhapatnam unit-II.

“The United States Food and Drug Administration (USFDA) have issued an Import Alert 66-40 on 20th March 2017 on the products manufactured at the company's Unit-II at Visakhapatnam, Andhra Pradesh,” Divis Laboratories said in a statement.

“The agency has exempted the 10 active pharmaceutical ingredients (APIs) namely Levetiracetam, Gabapentin, Lamotrigine , Capecitabine, Naproxen Sodium, Raltegravir potassium,  Atovaquone, Chloropurine , BOC core succinate and 2,4-wing active ester from the import alert,” it added.

Divis Labs said the company, along with third party consultants, is currently working to address the concerns of the US-FDA and is making all efforts to fully meet the compliance requirements.

At 09:35 am; the stock was down 18% at Rs 646 on BSE as compared to 0.15% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 6.78 million shares changed hands on the BSE and NSE so far.