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Shares of Divi’s Laboratories ended higher by nearly 17 per cent, adding Rs 4,088.29 crore to its market valuation, after the company said the US health regulator will lift an import alert imposed on the company’s Unit-II in Visakhapatnam.
The stock rose sharply by 16.73 per cent to end at Rs 1,074.30 on BSE. Intraday, it zoomed 21.37 per cent to Rs 1,117. On NSE, shares of the company soared 16.15 per cent to close at Rs 1,072.90. The company’s market valuation rose Rs 4,088.29 crore to Rs 28,519.29 crore.
In terms of equity volume, 12.17 lakh shares of the company were traded on BSE and over one crore shares changed hands on the NSE during the day.
Shares of Divi's Laboratories surged as much as 21.4 per cent intraday as the company that the US health regulator will lift an import alert imposed on the company’s Unit-II in Visakhapatnam and is moving to close out the warning letter issued to the unit.
The company “has been informed by the United States Food and Drug Administration (USFDA) that it will be lifting the Import Alert 66-40 and move to close out the warning letter issued to the company’s Unit-II at Visakhapatnam”, Divi’s Laboratories said in a filing to BSE.
After opening strong at Rs 1,012.30 against the previous close of Rs 920.30, the stock touched an intraday high of 1,117 and a low of Rs 1,012.30. In terms of equity volume, 9.37 lakh shares exchanged hands on the BSE.
At 12.10 pm local time, the shares were trading higher by 15.12 per cent at Rs 1,061 on the BSE. On the NSE, the shares rallied 15.26 per cent to 1,064.60.
The surge in Divi's Labs share price was the highest since December 22, 2016. The stock posted record intraday percentage gain.
Divi's stock led the gains on Nifty Pharma index, sending it higher by as much as 3.5 per cent and making it the top percentage gainer among indexes on the NSE.
The news about Divi's has a rubbing-off impact on other pharma stocks and gives hope to particularly those which are currently under FDA scrutiny concerning some facilities, says an analyst with a Mumbai-based brokerage firm.
Sun Pharmaceutical Industries, which has received a warning letter for its Halol facility and currently awaits FDA re-inspection, shot up as much as 4.3 per cent to its highest since July 27. Dr. Reddy's Labs and Aurobindo Pharma Ltd gained 3.5 per cent and 4.8 per cent, respectively.
Divi's stock had risen about 18 per cent this year as of Wednesday's close.
Earlier in September, Unit - 2 of Hyderabad-based Divi's Laboratories Ltd had received six observations from USFDA. The Vizag unit was inspected by USFDA from September 11 to September 19, 2017.
"This inspection was for full cGMP and verification of all corrective actions proposed against the previous inspection observations. All previous observations have been confirmed as completed and resolved,'' the company had said in an update.
(With inputs from Agencies)
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