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Dr Reddy's, Divi's Labs hit over two-year lows
Shares of two pharmaceutical companies Dr Reddy's Laboratories and Divi's Laboratories continued to trade under pressure, hitting an over two-year lows on BSE amid US drug regulator concerns.

Divi's Labs slipped 3.5% to Rs 612, extending its Tuesday’s 20% decline after the US Food and Drug Administration (USFDA) issued an import alert on the company’s unit-II of Visakhapatnam plant in Andhra Pradesh, albeit with exemptions for 10 drugs. The stock is trading at its lowest level since May 2014.

Dr Reddy's Laboratories hit its lowest level since June 2014 of Rs 2,560, down 2.4% in intra-day trade, extending its previous day’s 4.4% decline on BSE.

Since March 9, the stock of drug maker declined 10% after the company said the USFDA issued a Form 483 with 13 observations for the company’s formulation manufacturing facility at Duwada, Visakhapatnam.

Meanwhile, thus far in the calendar year 2017, Divi's Laboratories (down 22%) and Dr Reddy's Laboratories (down 16%) have underperformed the market by falling more than 15% each as compared to 9.8% rise in the S&P BSE Sensex.