Alkem Labs slips on getting 2 USFDA observations for Baddi facility

Alkem Laboratories fell 0.25% to Rs 2651.20 after the company said its facility in Baddi, Himachal Pradesh received two observations from the US drug regulator.

The US Food and Drug Administration (USFDA) had conducted an inspection at the company's manufacturing facility located at Baddi, India from 17th to 21st February 2020. At the end of inspection, the company has received a Form 483 with two observations. The company said it will put together a detailed response with adequate corrective and preventive measures to address the USFDA observations and the same is proposed to be filed within the timeline stipulated by USFDA. The announcement was made on Saturday, 22 February 2020.

Shares of Alkem Laboratories rose 2.79% in the past three trading sessions to settle at Rs 2,657.75 on Thursday, 20 February 2020, from its close of Rs 2,585.40 on 17 February 2020.

In the past one month, the scrip soared 12.96%. On the technical front, the stock's RSI (relative strength index) stood at 72.094. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

Alkem Laboratories' consolidated net profit surged 88.6% to Rs 381.98 crore on a 13.3% jump in net sales to Rs 2,181.84 crore in Q3 December 2019 over Q3 December 2018.

Alkem Laboratories is engaged in the development, manufacture and sale of pharmaceutical and neutraceutical products. The company operates through two segments: pharmaceutical and investing.

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