Divi’s Lab shares jump as much as 20% before closing 8% higher
New Delhi: Shares of drug firm Divi’s Laboratories on Monday surged 20% intra-day on BSE after the company said the US health regulator will lift an import alert imposed on a company unit at Visakhapatnam. During the trading session, the stock soared 19.99% to Rs816.15 on BSE.
Later, it gave up some of the initial gains and settled at Rs734.15, up 7.94%.
On the volume front, 71.14 lakh shares of the company were traded on BSE during the day.
The company “has been informed by the United States Food and Drug Administration (USFDA) that it will lift the Import Alert 99-32 imposed on the company’s Unit-II at Visakhapatnam”, Divi’s Laboratories said in a filing to BSE.
The company had earlier said that the USFDA had issued an import alert under clauses 99-32 and 66-40 in March, and a warning letter later for the Vishakhapatnam facility.
As per US Food and Drug Administration (USFDA), an import alert under 66-40 entails “detention without physical examination” of drugs from firms which have not met drug GMPs, while alert under 99-32 is issued to “firms refusing FDA foreign establishment inspection”.
Divi’s said it has taken up appropriate remediation measures to address the concerns raised by USFDA and awaits further action from the regulator in this regard.