Divi’s Labs

Divi’s Labs is the top loser on the BSE currently; down almost 19% at Rs.642.25 and this is after hitting a new 52-week low at Rs.635.

If any pharma stock tumbles down, be assured, the reason HAS TO BE the US FDA. Divi’s Labs announced today morning that it has received an import alert from the FDA for it Visakhapatnam unit-II.

The company has informed that six Active Pharmaceutical Ingredients (APIs) - Levetiracetam, Gabapentin, Capecitabine, Naproxen, Raltegravir and Atovaquone have been excluded from the import alert.

This comes as a blow especially because in December, the FDA had issued five observations to its Vizag unit.

As some products are excluded one cannot gauge the complete effect on this import alert; this unit at Visakhapatnam contributes 60-65% to total revenue of the company of which 20% comes from USA.