 "Alkem Labs shares surge 5% on USFDA's VAI status for Baddi facility")
Shares of Alkem Labs gain up to 4.77 per cent at Rs 5,250.30 per share on the BSE in Tuesday’s intraday trade. The share price of the company is presently trading near its 52-week high of Rs 5,581.20, hit on May 21, 2024. The company had hit its 52-week low of Rs 3,338.60 on June 26, 2023.
However, today’s uptick in the stock price came after the company’s manufacturing facility at Baddi received an establishment inspection report (EIR) from United States Foods and Drugs Administration (USFDA) classifying the inspection as voluntary action indicated (VAI).
“USFDA Inspection at company’s manufacturing facility located at Baddi, India dated 27th March, 2024, this is to inform you that US FDA has issued an EIR for the said manufacturing facility of the Company located at Baddi, India. The Inspection has been classified as VAI and has been closed accordingly,” the company said in an exchange filing on Tuesday.
According to USFDA, VAI means that objectionable conditions or practices were found in the inspection, but the agency is not prepared to take or recommend any administrative or regulatory action. This is different from the official action indicated (OAI) status which means regulatory actions are recommended.
USFDA had conducted the inspection from 19 March 2024 to 27 March 2024. At the end of the inspection, the company had received Form 483 with 10 observations.
Alkem Laboratories reported a 313.9 per cent increase in its consolidated net profit, reaching Rs 293.5 crore for the quarter ending March 31, 2024, compared to Rs 70.9 crore in the corresponding period the previous year.
During Q4FY24, revenue from operations amounted to Rs 2,935.8 crore, reflecting a 1.1 per cent growth from Rs 2,902.6 crore recorded in the same period a year ago.
More From This Section
At 02:06 PM; the share of the company pared most of its gains and was 1.15 per cent higher at Rs 5,068.70 per share on the BSE. By comparison, the BSE Sensex was trading 0.76 per cent higher at 77,931 levels.
The shares of the company are presently trading at a price to earnings multiple of 34.29 times with an earning per share of Rs 146.13.