Profit

Divi's Lab Shares Close 17% Higher As USFDA's Import Ban Set To Be Lifted From Vizag Plant

Divi's Laboratories has informed the NSE in a stock exchange filing that the USFDA will soon lift the import Alert 66-40 and will move to close out the warning letter issued to the company's unit-II at Vishakhapatnam.

 Share
EMAIL
PRINT
COMMENTS
Divi's Lab Shares Close 17% Higher As USFDA's Import Ban Set To Be Lifted From Vizag Plant
New Delhi: Divi's Laboratories shares zoomed soon after the company informed in an exchange filing that the USFDA (US Food and Drug Administration) is set to lift the import Alert 66-40 and will move to close out the warning letter issued to the company's unit-II at Vishakhapatnam.

Reacting to the news instantly, the Divi's Lab shares surged by over 20% in the morning trade. However, after paring some of the gains, the shares closed at Rs 1,080.90 on NSE, Rs 157.25, or 17%, higher, against the previous session's closing.

The stock had hit a 52 week high of Rs 1,297 on November 1, 2016 and the 52-week low of Rs 532 on May 29, 2017 on the NSE.

On September 20, 2017, the company had announced that all the earlier observations by the US health regulator regarding its Visakhapatnam facility have been confirmed as completed and resolved.

In March this year when the company had announced that it received an import alert from the USFDA, the stock prices had crashed by 20%.

That time, the analysts had said that it might take 2 to 3 year to address the concerns of the US agency over the Visakhapatnam plant, which contributes nearly 60 per cent to Divis's revenue

The company had registered Rs 890 crore as net sales in the September quarter this fiscal against Rs 1,003 crore in the year ago quarter.

The net profit stood at Rs 207 crore in the second quarter of fiscal 2018 against Rs 223.8 crore in the year ago period.

Meanwhile, diluted earnings per share (EPS) stood at Rs 7.79 in the September quarter against Rs 8.43 in the year ago quarter.


 


Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top