Shares of Alkem Laboratories hit a 52-week high of Rs 5,225 on 1 January after the company announced the sale of one of its units in the US to New Mill Capital Holdings LLC.

In its regulatory filing, the company said, “This is to inform you that as part of the company’s operational strategy, the operations of the company carried out at the St Louis manufacturing facility situated in the USA owned by S&B Pharma LLC, a step-down subsidiary of the company, are closed.”

The company added that all rights, title, and interest in the land, improvements, and personal property in the above-mentioned property that was owned by the said subsidiary has been sold to New Mill Capital Holdings LLC according to the ‘Purchase and Sale Agreement’.

Moreover, the company has sold the said unit for a total consideration of $7.9 million.

The purchase and sale agreement was entered into for the sale of the facility subject to satisfactory due diligence on 15 November 2023.

Furthermore, on 1 December, the USFDA (US Food and Drug Administration) issued Form 483 with three observations after the US regulator conducted an inspection between 27 November and 1 December at the company’s API manufacturing facility at Mandwa.

At 11:37 am, the shares of Alkem Laboratories had lost all its early gains and were trading 1.11% lower at Rs 5,144.65 on NSE.