Alkem Laboratories drops after receiving observations from USFDA for facility

Alkem Laboratories declined 0.82% to Rs 1,793.40 at 10:08 IST on BSE after the company said that it has received the inspection report from the US drug regulator which contains two 483 observations for its facility.

The announcement was made during market hours today, 18 September 2017.

Meanwhile, the S&P BSE Sensex was up 189.89 points or 0.59% at 32,462.50.

On the BSE, 1,506 shares were traded on the counter so far as against the average daily volumes of 4,531 shares in the past one quarter. The stock had hit a high of Rs 1,813.85 and a low of Rs 1,745 so far during the day.

It had hit a record high of Rs 2,238 on 5 April 2017 and a 52-week low of Rs 1,400 on 9 November 2016. The stock had outperformed the market over the past one month till 15 September 2017, gaining 3.65% compared with the 2.62% gains in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 2.97% as against Sensex's 3.85% gains. The stock had also underperformed the market over the past one year, gaining 11.57% compared with the 13.58% gains in the Sensex.

The large-cap company has equity capital of Rs 23.91 crore. Face value per share is Rs 2.

Alkem Laboratories said that it has received the inspection report from the United States Food & Drug Administration (USFDA) which contains two 483 observations after conducting an inspection at the company's manufacturing facility located at Baddi, India from 11 September 2017 to 15 September 2017.

The company shall put together a detailed response with adequate corrective and preventive measures to address the US FDA observations and the same is proposed to be filed within the timeline stipulated by USFDA.

Alkem Laboratories' consolidated net profit fell 73.8% to Rs 63.78 crore on 12.5% drop in net sales to Rs 1295.24 crore in Q1 June 2017 over Q1 June 2016.

Alkem Laboratories is a pharmaceutical company with global operations, engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.

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