Divi's Laboratories, a Rs. 3,750 crore plus pharma major from Hyderabad with 88 per cent sales contribution from exports, has suffered a major setback on Bombay Stock Exchange today and the scrip declined sharply by over 11 per cent or over Rs. 100 on account of issue of a Form 483 with 5 observations by US FDA on December 7, 2016. Divi's Unit-II at Visakhapatnam, Andhra Pradesh has had an inspection by the US FDA from November 29 to December 6, 2016.  North America contributed around 32 per cent to its sales and Europe around 43.3 per cent.

Divi's scrip touched to yearly lowest level at Rs. 745 today and closed at Rs. 765 on BSE. The scrip touched to its yearly peak level at Rs. 1380 on September 16, 2016. Its market capitalisation declined toRs. 20,423 crore.

Its export oriented unit (Unit-II) is located at village Chippada, Bheemunipatnam Mandal, about 30 KM from the port city of Visakhapatnam. This unit went into commercial operations during March 2003. The Unit has 8 production blocks with around 192 reactors totaling a capacity of 1622.55 mt with all utility and service units. The company has three research centres with the well defined functional focus.

As at the end of 2015-16, Divi's had a total 41 drug master files (DMFs) with the US FDA and 199 EDMFs and 20 Certificates of Suitability with various European Union authorities. It has filed a total of 31 patents for generic products.   

For the first half ended September 2016, Divi's net sales increased by 13.2 per cent to Rs. 2,018 crore from Rs. 1,782 crore in the similar half of last year. However, its net profit declined by 3 per cent to Rs. 526 crore from Rs. 542 crore. EBIDTA also declined by 1.4 per cent to Rs. 731 crore from Rs. 742 crore. Employees cost moved up by 59.5 per cent to Rs. 261 crore from Rs. 164 crore. It operates predominantly in export markets and has a broad product portfolio under generics and custom synthesis.