Divi's Labs climbs 3% on minimal impact of USFDA alert on Visakhapatnam unit

NEW DELHI: Shares of Divi's Laboratories jumped over 3 per cent in Monday’s trade after the company said that less than 5 per cent of its business has been impacted by the recent USFDA alert on Unit-II at Visakhapatnam, given several of its products were exempted from the alert.

The company's management had a conference call with analysts and investors at 11 am on Monday, with respect to the import alert. Following the development, the stock climbed 3.5 per cent to hit a high of Rs 645 on BSE.

The company said that import alert came as a surprise, as it was not preceded with a warning letter. There will be one more communication with USFDA by March 31, it said, ET Now reported.

In a filing to BSE, the company said that it has “already initiated necessary measures to address the concerns raised by the US-FDA and is making all efforts to fully meet the compliance requirements.”

A total of 10 drugs including Levetiracetam, Gabapentin and Naproxen sodium were exempted by the USFDA. Exports to US from Vizag unit 2 accounts for 22 per cent, the company said.