Divi’s Laboratories on a free fall; touches 52-week low

Hyderabad-based Divi’s Laboratories is having a bad day on the streets. The stock of the company, which previously closed at Rs 866 on December 26, opened two per cent down. This is not the only day when the stock is trading in the red. In the previous two trading sessions too the stock had tanked 33 per cent.

According to some media houses, the US Food and Drug Administration has made some negative observations with regards to proper control not being exercised over the computer system, company's facility equipments not being maintained to ensure purity of quality, documentation and records not being maintained properly or inaccurately falsified by the company.

Divi's Lab has responded to this entire episode, informing the bourses that it had an inspection by the US-FDA from 29 November to 6 December, and it has been issued Form 483 with five observations to which the company will respond in detail shortly.

The stock of Divi’s Lab as on 12.54 p.m. is trading at Rs 774.10, down by 10.62 per cent. It had also touched its 52-week low of Rs 745 on an intra-day basis and is the largest loser in BSE 500 on 26 December.