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Alkem Lab declines after UK MHRA observations on its Maharashtra unit

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Capital Market
Last Updated : Apr 01 2016 | 11:47 AM IST

Alkem Laboratories fell 3.93% to Rs 1,312.75 at 11:20 IST on BSE after the company said that UK Medicines and Healthcare Products Regulatory Agency has made eight observations on the company's bioequivalence facility located at Taloja, Maharashtra.

The announcement was made after market hours yesterday, 31 March 2016.

Meanwhile, the S&P BSE Sensex was down 117.37 points or 0.46% at 25,224.49.

On BSE, so far 50,000 shares were traded in the counter as against average daily volume of 42,895 shares in the past one quarter. The stock hit a high of Rs 1,328 and a low of Rs 1,271 so far during the day. The stock had hit a record low of Rs 1,232 on 26 February 2016. The stock had hit a record high of Rs 1,589 on 5 January 2016.The stock had underperformed the market over the past one month till 31 March 2016, surging 8.24% compared with Sensex's 10.17% rise. The scrip had also underperformed the market in past one quarter, sliding 7.9% as against Sensex's 2.97% fall.

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

The UK Medicines and Healthcare Products Regulatory Agency (UK MHRA) had last month conducted an inspection at the company's bioequivalence facility located at Taloja, Maharashtra.

Alkem Laboratories said it is in the process of putting together responses to address observations made by UK MHRA in its report. Alkem said it will submit the responses within the timeline stipulated by UK MHRA. The company said it does not anticipate any impact on its existing registered products in EU market.

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Alkem Laboratories' consolidated net profit rose 17% to Rs 188.93 crore on 28.6% growth in net sales to Rs 1245.99 crore in Q3 December 2015 over Q3 December 2014.

Alkem Laboratories is the fifth largest pharmaceutical company in India by domestic sales. The developer, manufacturer and seller of pharmaceutical and neutraceutical products including branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals has 14 manufacturing locations in India and two in the US.

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First Published: Apr 01 2016 | 11:17 AM IST

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