Dr Reddy's, Divi's Labs hit over two-year lows

Thus far in 2017, Divi's Lab and Dr Reddy's underperformed the market by falling more than 15% each.

Shares of two pharmaceutical companies Dr Reddy's Laboratories and Divi's Laboratories continued to trade under pressure, hitting an over two-year lows on BSE amid US drug regulator concerns.

Divi's Labs slipped 3.5% to Rs 612, extending its Tuesday’s 20% decline after the US Food and Drug Administration (USFDA) issued an import alert on the company’s unit-II of Visakhapatnam plant in Andhra Pradesh, albeit with exemptions for 10 drugs. The stock is trading at its lowest level since May 2014.

“More than the immediate financial impact, we believe the import alert can damage customer confidence, drive up order cancellations and prompt