Divis Labs firmly in the red

Divis Labs is literally butchered to pulp since Friday. Today it hit a 28-month low at Rs.745, down 14% and since Friday, this is a collective drop of 33%.

The reason is the report put out by broking firm, Emkay Global. The report was pretty scathing saying that the company had received an observation from the US FDA which said that the company had actually indulged in manipulation of data records. This is with regards to the FDA’s inspection of its unit –II at Vizag, which was down between 29^th Nov to 6^th Dec, wherein the FDA had issued a Form 483 with five observations.

The company clarified to the exchanges on Friday, denying this allegation. But this has managed to soothe any nerves and the stock price continues to remain firmly in the red as the needle of doubt simply refuses to move.