Divi’s Labs has surged over 21% to Rs.1117 today morning and remains the top gainer on the BSE. Volumes are robust, up over 7 times.

The stock price has surged after the company announced today morning that it has been informed by the US FDA that it 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.

If one may recollect, the stock had tanked when in March, the FDA had issued an import alert for this very same facility under 66-40 and also 99-32 of the FDA regulations.  The latter one – clause 99-32 was lifted in July.

The company had declared its Q2FY18 performance on the 31st Oct and it was not too encouraging, depicting the pain of the ongoing FDA alerts. On a 11.5% (YoY) drop in revenue at Rs.890 crore, it posted a 8% decline in net profit at Rs.207 crore. Operating profit slipped 5% and margins fell by a good 200 bps to 31.14%.