Divi's Labs slumps after USFDA import alert

NEW DELHI: Shares of Divi’s Laboratories nosedived 20 per cent in Tuesday’s trade after the company informed stock exchanges that US drug regulator has issued an Import Alert 66-40 on the products manufactured at the company's Unit-II at Visakhapatnam, Andhra Pradesh.

In a filing to BSE, the drug marker said that the USFDA has exempted the company from making ten drugs including Levetiracetam, Gabapentin, Lamotrigine, Capecitabine and Naproxen sodium. Other drugs that are being extempted from the alert are Raltegravir potassium, Atovaquone Chloropurine, BOC core succinate and 2,4-wing active ester.

“Divi's Laboratories, along with third party consultants, is currently working to address the concerns of the USFDA and is making all efforts to fully meet the compliance requirements,” the company said.

Following the announcement, the stock fell 19.69 per cent to hit a 52-week low of Rs 635 on BSE. The stock has dropped 42 per cent in past one quarter. At the prevailing price, the scrip is trading at 18.8 times its trailing 12-month earnings per share (EPS).