Alkem Labs buzzes and fizzles

Alkem Labs was buzzing loud and strong in the morning trades. The stock price surged over 3% on opening to Rs.1844 – its intra day high point and after that it fizzled – it continues to remain in the green but just about.

The company had announced on Friday after market hours good news, that too from the US FDA.

The company stated, “United States Food and Drug Administration (USFDA) had conducted an inspection at the company's bioequivalence facility located at Taloja from July 10, 2017, to July 14, 2017. At the end of the inspection, no Form 483 was issued.”

A Form 483 is issued to a company after the inspection when the USFDA investigator(s) has observed any conditions that in their judgement may constitute violations of the Food Drug and Cosmetic Act and related Acts.