Divi's Lab dives 21% on USFDA concerns

Drug firm Divi's Laboratories plummeted over 21 per cent on bourses today following media reports on critical observations made by the US heath regulator about the company's Visakhapatnam plant.
On BSE, the stock ended the day at Rs 866.10, down 21.87 per cent from its previous close. After opening at Rs 1,101.05, it had nose-dived 25.91 per cent to hit 52-week low of Rs 821.35.
Following decline in the counter, market capitalisation of the company fell by Rs 6,437.62 crore to Rs 22,992.23 crore.
On similar lines, the share plunged 20.80 per cent to settle at Rs 877.70 on NSE. It had opened at Rs 1,100.50 and dropped 27.71 per cent to its 52-week low of Rs 801.10.

On the volume front, over 1.45 crore shares of the company changed hands on the bourses.
Earlier this month, the US Food and Drug Administration (USFDA) had made five observations after inspecting the manufacturing plant of Divi's Laboratories at Visakhapatnam in Andhra Pradesh.

According to media reports, USFDA observed that proper control was not being exercised over the computer system at Divi's Laboratories' Visakhapatnam plant.
Besides, facility equipments were not maintained to ensure purity, quality and strength. The health regulator further observed that the documentation and records were not maintained or inaccurately falsified, media reports said.
In a response, Divi's Laboratories said that it is not aware of any information that has not been announced to the exchanges which could explain the movement in trading.