Alkem Laboratories slips 8% on USFDA observations

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New Delhi | Updated: September 30, 2016 4:33:39 PM

Alkem Laboratories shares slipped as much as 8.26 per cent on Friday after the company informed bourses that it has received inspection report with thirteen observations from the US health regulator

Alkem labsAlkem Laboratories shares slipped as much as 8.26 per cent on Friday after the company informed bourses that it has received inspection report with thirteen observations from the US health regulator (Source: Reuters)

Alkem Laboratories shares slipped as much as 8.26 per cent intraday on Friday after the company informed bourses that it has received inspection report with thirteen observations from the US health regulator after the inspection of its manufacturing facility at Daman. At 10.36 am, shares of Alkem Laboratories were trading 5.21 per cent down at Rs 1,710. The scrip opened the day at Rs 1,693.90 and has touched a high and low of Rs 1,765.60 and Rs 1,655, respectively, in trade so far. Later, the scrip ended 7.97 per cent down at Rs 1660.30.

In a BSE filing Alkem Labs said, “The United States Food and Drug Administration (USFDA) had conducted an inspection at the company’s manufacturing facility located at Daman from September 20 to September 29, 2016. The company shall put together a detailed response with adequate corrective and preventive measure to address the USFDA Observations and the same is proposed to be filed within the timeline stipulated by USFDA.”

For the quarter ended June 30, 2016, the company reported a consolidated net profit of Rs 238.79 crore, up 18.74 per cent, against Rs 201.10 crore in the corresponding quarter a year ago. Net sales of the company increased by 20.34 per cent year-on-year to Rs 1439.36 crore. It had reported a net profit of Rs 1196.03 crore in the same quarter last year. Operating profit of the company jumped by 17.90 per cent year-on-year to Rs 299.17 crore for the quarter under review against Rs 253.75 crore in the same quarter last year.

Since listing on bourses, shares of Alkem Laboratories advanced nearly 31 per cent to Rs 1804 till September 29.

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