Shares of Divi’s Laboratories climbed 5 per cent to Rs 1,736 in the intra-day trade on the BSE on Friday after the company announced that the US health regulator FDA issued no 483 observations for its Unit-1 facility in Telangana. The stock of the drug maker was trading close to its 52-week high price of Rs 1,776, touched on October 27, 2019.
“The Company’s Unit-I facility at Lingojigudem, Bhuvanagiri Yadadri district, Telangana has been inspected by the US Food and Drug Administration (USFDA) from the 11th of November, 2019 to the 15th of November, 2019. The inspection has been concluded with no 483 observations,” Divis Labs said in a regulatory filing.
This inspection was a general Current Good Manufacturing Practice (cGMPa) inspection by the USFDA, it added.
In the past two weeks, the stock of Divi’s Labs had underperformed the market by falling 6 per cent, after the company’s EBITDA margin shrank 410 bps (basis points) YoY to 35.3 per cent in September quarter (Q2FY20). In comparison, the benchmark S&P BSE Sensex was up 0.39 per cent during the same period till Thursday.