USFDA lifts import alert from Divis Lab, stock surges

In a significant development, the United States Food and Drugs Association (USFDA) withdrew its warning letter to pharma company Divi's Laboratories’ unit at Vishakapatnam, following an evaluation of the corrective measures taken up by the company.
 
The US health regulator USFDA had issued a warning letter to the company on April 13, 2017. The warning letter was closed out today after the USFDA completed the evaluation of the company’s corrective actions, taken in response to the USFDA warning letter.
 
The warning letter was issued to the company’s Vishakapatnam unit for the non-compliance of good manufacturing practice (GMP) norms, according to the company’s BSE filing. However, the withdrawal of the warning letter lifted the import alert imposed on the company’s unit.
 
Following the development, the stock of Divi’s Laboratories surged to an intraday high of Rs. 1,089.90 per share, higher by nearly 8 per cent on BSE. The stock hit an intraday low of Rs. 1,022.05 per share on BSE on Friday.

At 12:20 hours, the stock was trading at Rs. 1,025.60 per share, higher by 1.51 per cent on BSE. Meanwhile, S&P BSE Sensex was trading at 33,234.66 level, higher by 0.05 per cent, and NSE Nifty50 was trading at 10,298 level, higher by 0.11 per cent on Friday.