Alkem Labs had been hitting new highs consistently this almost entire week. In fact yesterday too, it hit a new high at Rs.1852.95. Though today the counter is streaked in red. Intra day the stock slipped over 8% to Rs.1655 and has since then recovered to Rs.1700, nevertheless, down 6%.

Yesterday, after closing bel, the company issued a statement saying that US FDA had conducted an inspection at the Company’s manufacturing facility located at Daman, India from September 20 to September 29, 2016.

In this regard, the company has received the inspection report which contains thirteen 483 observations. The said that it was putting a detailed response with adequate corrective and preventive measures to address the US FDA Observations and the same is proposed to be filed within the timeline stipulated by US FDA.

Naturally the market is spooked because historically, it has been seen that when there are so many observations from the FDA, the company usually needs to be prepared for a long haul to complete this process and emerge “clean.”