Alkem Labs receives OAI letter from US FDA

On Wednesday, Alkem Laboratories informed the bourses that its manufacturing facility located at St. Louis, USA, has received a letter from the US FDA classifying the inspection conducted as Official Action Indicated (OAI), which means regulatory/administrative actions will be recommended.

The said facility accounts for nearly 2 per cent of the Alkem’s overall US revenues and contributes merely half per cent to the overall consolidated sales

The company has given clarification that this classification will not have any significant impact on existing supplies or the existing revenues from the operations of this facility.

Notably, the promoters have increased their stake in the company from 65.92 per cent in September 2018 ended quarter to 66.02 per cent in the March 2019 ended quarter.

The stock of Alkem Laboratories opened today at Rs. 1708.50 and was trading flat. At 14.42 hours, the stock was at Rs. 1701.6, down marginally by 0.7 per cent from the previous close of Rs. 1713.55.