The move assumes significance because a go-ahead from the US Food and Drug Administration for the new unit in Visakhapatnam is likely to give a huge boost to the company’s revenues in upcoming quarters.
An email questionnaire sent to Divi’s Laboratories did not elicit any response. Shares of the company jumped around five per cent in the past one week to touch a high of Rs 1,235.50 on Monday from a low of Rs 1,171 last Thursday on the Bombay Stock Exchange.
On Monday, Divi’s Labs’ shares closed at Rs 1219.05 apiece, down 0.27 per cent from the previous close.
Divi’s Laboratories with a market capitalisation of around Rs 17,000 crore (Rs 170 billion) is considered pioneers of contract research and manufacturing services.
According to the company’s website, it already has an existing US FDA inspected facility in Visakhapatnam.
The US FDA is expected to inspect a new facility of the company now in Visakhapatnam, which was built recently, said a source.
However, it is not clear whether the company plans to manufacture products for its CRAMS business from the new facility or it wants to launch them on its own in the US, the world’s largest drug market.
“Either way, an approval for the facility would bring fortunes for the company,”
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