Divi's Lab seen up as USFDA clears Vizag Unit-II

Shares of Divi's Laboratories is likely to gain in today's trade following the approval from the USFDA for its Vizag unit.

Nov 20, 2017 08:11 IST India Infoline News Service

Divi's Laboratories is likely to witness positive traction in the stock as the US Food and Drug Administration has cleared the company's unit-II in Vishakhapatnam, Andhra Pradesh.

The company's unit-II was issued a warning letter and was subsequently placed under an import alert by the US drug regulator earlier this year. 

The unit is an important facility for the company and makes high-value active pharmaceutical ingredients for the export market.

In the last trading session, Divis Laboratories Ltd ended at Rs 1018.3, up by Rs 12.7 or 1.26% from its previous closing of Rs 1005.6 on the BSE. The stock traded above its 50 DMA.

Divi's Laboratories manufactures and markets generics, APIs and intermediates. It is also engaged in custom synthesis of active ingredients and advanced intermediates for pharma MNCs. The company derived 49% of FY17 revenues from generics, followed by CRAMS and nutraceutical at 45% and 6%, respectively.

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