Divi's Laboratories stock rises up to 20% after USFDA lifts import alert

Drug Firm Divi's Laboratories stock rose in early trade on Thursday after the US health regulator USFDA announced lifting of an import alert on the company.

At 11:01 am, the stock was trading 16.91 per cent or 155.65 points higher at 1075 level on the BSE. The stock rose up to 20 per cent to 1117 level in early trade.  It is up 37.73 percent since the beginning of this year. On an yearly basis, the stock fell nearly 15 percent.

USFDA will be lifting the import alert 66-40 and moving to close out the warning letter issued to the company's unit-II at Visakhapatnam, the firm said.

In March, the USFDA had issued import alert for the company's unit-II at Visakhapatnam under the two clauses 66-40 and 99-32 of the FDA regulations.

Divi's Laboratories is engaged in manufacturing and sale of active pharmaceutical ingredients (APIs) and Intermediates. The pharma firm's geographical segments include India (Sales to customers within India) and other countries (Sales to customers outside India).

Recently, Divi's Laboratories reported a 7.62 per cent decline in its Q2 net profit to Rs 206.78 crore for the second quarter ended September 30, 2017. The company had posted a net profit of Rs 223.85 crore in the same period of previous fiscal. The company's revenue from operations declined to Rs 890.20 crore as against Rs 1,005.43 crore during the same period of previous fiscal.