Divi’s Laboratories Ltd. said the US FDA has formally removed an import alert on its Visakhapatnam unit, permitting for the company to sell medicines in the US market without individual batch tests and reviews by customs, as was required by the alert. This move should boost Divi's sales in the coming quarters - the US contributes  to approximately 33% of Divi's Laboratories' total sales.

The US FDA had issued an import alert in March under its clauses 99-32 and 66-40, and issued a warning letter later for the Visakhapatnam facility. The FDA had said the unit was in violation of multiple good manufacturing practice norms. The announcement had sent Divi's share price tumbling. 

Last week however, there was some relief for Divi's on the horizon, when the FDA updated its website saying that it was closing out the warning letter on the Vizag unit. The lifting of the alert is a relief for Divi's not just in sales - the warnings had cast a shadow on the company's manufacturing processes and its outlook for its upcoming quarters. The lifting of the alert eliminates a key note of caution for analysts in their reviews and updates on the company.