Alkem Labs to withhold production from US plant, stock tanks

Alkem Laboratories shed 2 per cent at closing as the company received a pre-approval inspection for a product manufactured at its plant in St. Louis, US.

The company has informed the bourses on receiving a letter from the United States Food and Drug Association (USFDA) informing that the manufacturing of the said product will be withheld until the completion of the final evaluation by the USFDA which will be then communicated to the company, accordingly. Meanwhile, the company has brought to notice of its shareholders that the said product is not being manufactured as they are awaiting approval from USFDA.

Alkem Laboratories is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products. The company operates through two segments: pharmaceutical and investing. The company produces generics, generic drugs, active pharmaceutical ingredients (APIs) and neutraceuticals, which it markets in India and approximately 50 countries internationally, primarily the United States.

On Friday, the shares of Alkem Laboratories were trading flat. Unfortunately, post the news, the share price fell sharply by over 1 per cent and finally closed at Rs. 1,728 per share, down by 1.28 per cent. The shares reached an intraday high of Rs. 1,763 and an intraday low of Rs 1,709.25. Its 52-week high was Rs. 2,265 and the 52-week low was 1,704 per share on the BSE.