The stock price of pharmaceutical company Divi’s Laboratories fell by 22% intraday and hits 52 weeks low on Friday before closing at R866.10, after media reports about anomalies in its manufacturing unit. The BSE healthcare index also fell by 96.91 points and closed at 14572.22.
Soon after the decline in stock price, a spurt in volume has been registered, the volume increased by 74 times from last two weeks average of 0.16 lakh to 11.73 lakh.
The exchange sought a clarification from Divi’s Labs on December 23, with reference to a media report quoting, “Emkay says on Vizag 483 observation that proper control not being exercised over computer system, facility equipment not maintained to ensure purity quality strength and documentation and records not maintained or inaccurate falsified.”
The company clarifies its position stating that they have mentioned all necessary information about US Food and Drug Administration’s (USFDA) inspections and observations vide letter dated December 7.
The USFDA had issued form 483 to Divis Labs with five observations against the company’s Chippada Village unit in Visakhapatnam , Andhra Pradesh.
Form 483 is issued to firm management at the conclusion of an inspection when investigators observe any conditions that in their judgment may constitute violations of the FD&C Act and related Acts.