Divis Laboratories Share Price

Divis Laboratories Ltd

Divis Laboratories Limited is among the world leaders in the pharma industry, focusing on the production of Active Pharmaceutical Ingredients (APIs), intermediates, and nutraceuticals. The company is among the largest API manufacturers, having two manufacturing units, and a strong presence across 100 countries.

Divis does not only support generic business, but also assists innovative pharmaceutical companies through its custom synthesis division for patented products, providing a full range of services from clinical trials to commercialization, and post-marketing activities.

With a diverse portfolio of approximately 160 products across various therapeutic areas, Divis Laboratories is a major player in the global pharmaceutical industry, having a positive impact on the Divis Laboratories Ltd share price.

Global Presence and Subsidiaries

The company operates six manufacturing facilities and has a strong presence in multiple international markets. Additionally, it has two subsidiaries:

• Divis Laboratories (USA) Inc. – Based in the United States, focusing on marketing Nutra products.

• Divis Laboratories Europe AG – Located in Switzerland, serving European customers and expanding the company’s reach in the region.

Research and Development (R&D) Facilities

Divis Laboratories invests heavily in research and development, with dedicated research centers at:

• Sanathnagar, Hyderabad – Specializing in custom synthesis, contract research for multinational companies, and future generics development.

• Manufacturing Sites – Supporting process innovations and structural confirmations for APIs and intermediates.

Company History and Expansion

Divis Laboratories commenced its operations in 1990 as Divis Research Center Limited (DRC), focusing heavily on R&D. The company aimed to establish itself as a focal entity in the pharmaceutical sector through scientific innovation and expertise in Active Pharmaceutical Ingredients (APIs). During the formative years, Divis concentrated on contract research and custom synthesis for international pharmaceutical companies needing high-quality, economical services.

The company underwent a name change in 1994 to Divis Laboratories Limited. This was due to the firm broadening its scope of business beyond research and starting high-volume manufacturing. This strategic move enabled the company to transition from being a focused research entity to a fully integrated pharmaceutical entity with manufacturing and commercial production.

Divis made a significant move in 1995 by commissioning its first manufacturing unit (Unit I) at Choutuppal, close to Hyderabad. This was constructed to help the company’s mission of manufacturing APIs in large quantities while having a strong emphasis on research-based quality control.

In 1997, Divis marked a major achievement by acquiring ISO 9002 certification from SGS-Yarsley, U.K. The certification acknowledged the company's dedication to international quality standards and enhanced its credibility with global pharmaceutical customers.

By 1999, Divis advanced greatly in its manufacturing potential. And this was also solidified by the award of a Certificate of Suitability (CoS) by European Directorate for the manufacture of Naproxen. This made it easier for Divis to enter regulated markets in Europe, where it could grow its customer base and gain a name in the global pharma supply chain.

Growth and Certifications

The early 2000s were the years of fast growth and regulatory acknowledgment for Divis Laboratories. In 2001, the company received the OHSAS 18001 Certification from BVQI, London, for Occupational Health and Safety Management Systems.

As the demand for its products kept growing, Divis launched a significant expansion program. In 2002, the firm started establishing its second manufacturing plant (Unit II) at Chippada, Visakhapatnam. It was part of its long-term plan to expand production capacity and meet the growing global demand for quality APIs and intermediates.

In 2003, Divis made another giant leap towards research excellence by setting up DRC-Vizag, a dedicated research facility with a focus on basic research in niche business areas. This research facility was instrumental in creating sophisticated and high-value APIs.

The company's growth trajectory took a major leap in 2004 when it went public with an Initial Public Offering (IPO). Divis Laboratories was successfully listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), marking a new phase in its corporate journey. The funds raised from the IPO were strategically invested in capacity expansion, infrastructure development, and research initiatives.

Special Economic Zones (SEZ) and Infrastructure Expansion

• In 2006:  Got the government nod to establish a sector-specific SEZ for pharmaceutical intermediates in Visakhapatnam, investing ₹200 crore.

• Between 2007–2008: Formulated the Divis Pharma SEZ, introducing production facilities and commissioning a Nutraceuticals Manufacturing plant.

• Between 2009–2011: Introduced new products, including custom synthesis APIs and intermediates. Also set up DSN SEZ Unit at Chippada, Visakhapatnam, with a ₹200 crore investment.

Global Recognition

During the period from 2012 to 2017, Divis Laboratories consolidated its position as a reliable name in the international pharma industry. The firm passed several regulatory audits successfully, reflecting its dedication to quality and regulatory compliance.

A major highlight came in 2014 when Divis Laboratories cleared inspections from some of the world’s top regulatory authorities. The Korean Food and Drug Administration (KFDA) conducted a detailed review of the company’s manufacturing processes, ensuring they met South Korea’s strict pharmaceutical guidelines. Around the same time, COFEPRIS (Mexico) granted first-time approvals for both the Hyderabad and Visakhapatnam units, opening doors to the Latin American market.

The US FDA completed its fourth and fifth inspections of Divis’ Units I and II, reinforcing the company’s standing as a reliable manufacturer for the US market.

In 2016, Divis Laboratories marked a major milestone when Unit II (Visakhapatnam) was inspected by the US FDA and no observations were made. In 2017, the US FDA placed Import Alert 6640 on Unit II, temporarily suspending exports to the US. Despite this setback, Divis took quick corrective measures, setting up tighter compliance measures, and worked hard to address the concerns of the FDA.

The same year, the company cleared inspections from Ireland's Health Products Regulatory Authority (HPRA) and Slovenia's JAZMP. These clearances further bolstered Divis' image in the European market and reiterated its position as a reliable worldwide pharmaceutical supplier.

Infrastructure Investments and Further Expansion

• 2018: US FDA conducted inspections at Choutuppal, Telangana.

• 2019: Initiated two major brownfield SEZ projects with an investment of ₹1,200 crore:

1. DCV SEZ Unit at Visakhapatnam (₹600 crore)

2. Another SEZ project at Choutuppal, Telangana (₹600 crore)

• 2020:

1. Started commercial operations at both SEZ units.

2. Began a debottlenecking project at Units I & II, investing ₹300 crore to increase production capacity.

3. Enhanced waste treatment infrastructure at Unit II (₹150 crore investment).

Pandemic and Post-Pandemic Outlook

The spread of the COVID-19 pandemic during early 2020 brought tough challenges to businesses across the globe, throwing supply chains out of gear and shutting down operations. But, due to being a part of the critical pharma industry, Divis Laboratories was excused from country-wide lockdown rules in March 2020.

As precautionary measures, Divis Laboratories set up strict safety measures to protect its workers while also maintaining business continuity. The company put in place strict hygiene practices, social distancing, and constant health checks at its production units.

Brief Overview

Based on its solid foundation, Divis Laboratories continues to increase its production capacity and invest in technological upgradation to cater to the growing global demand for APIs. With the pharmaceutical sector experiencing a boom in demand for major therapeutic drugs, Divis has strategically positioned itself as a major supplier of APIs for blockbuster drugs. This, in turn, has had a positive impact on the Divis Laboratories share price.