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Divi’s Labs Grows By Almost Half

Company Sees ‘Minimal Impact’ From COVID-19

Executive Summary

Despite having ongoing expansion activities held back due to the impact of COVID-19, India’s Divi’s Laboratories has been able to enjoy “near normal operations” during its financial first quarter, reporting 47% growth, compared to the prior year period.

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As the global generics industry had predicted, the unexpected growth seen in the first quarter of 2020 due to forward buying caused by COVID-19 levelled off in the second quarter. However, a few companies managed to report a “mixed” second quarter or a positive first half for 2020, even after experiencing challenges, such as operational interruptions, posed by the pandemic.

Divi’s Labs Posts Moderate Growth

A modest rise in Divi's Labs' custom synthesis business offset strong growth in nutraceuticals, while a gross margin contraction resulted in the firm's net profit falling.

Divi’s invests in two of its Indian facilities

Divi’s Laboratories says it is investing Rs12.0 billion (US$163 million) in two of its sites in India “in order to cater to the increasing opportunities in generic and big pharmaceutical business”.

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