Divi’s Laboratories shares hit a day high of Rs 9,323.50 on October 19 following an EU panel’s backing for Eli Lilly’s weight-loss pill.

A committee of the European Medicines Agency gave a positive opinion on 15 October, recommending approval of Foundayo, an Eli Lilly tablet for weight management and type 2 diabetes in adults.

The drug’s chemical name is orforglipron. The application came from Eli Lilly Nederland B.V., the company’s Dutch unit.

It is a recommendation, not a licence. The European Commission still has to grant formal approval. In the US, regulators cleared the pill earlier this year.

For weight management, the tablet is meant for adults who are obese, or overweight with at least one related health problem such as high blood pressure.

It is also meant for adults whose type 2 diabetes is not well controlled. The most common side effects are stomach-related, including nausea, vomiting and diarrhoea.

Divi’s Laboratories has not announced any role in the drug. Its three latest exchange filings, the most recent dated 6 October, cover routine matters.

The Hyderabad-based company makes active pharmaceutical ingredients, the core chemicals that go into medicines, and also manufactures to order for global drug makers.

Its last set of results came on 1 August. For the April to June quarter, Divi’s reported consolidated net profit of Rs 902 crore, up 65.5% from Rs 545 crore a year earlier.

Revenue from operations rose 27.8% to Rs 3,080 crore. At 10:09 am, shares of the company were trading at Rs 9,241.00 on NSE, up by 1.06% from the previous close of Rs 9,144.50.

The stock opened at Rs 9,191.50 and has dipped to a low of Rs 9,150.50 so far. Its 52-week high stands at Rs 9,740, set on 24 September. Its 52-week low is Rs 5,647.50, recorded on 2 April.

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