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Impact Analyses: Alkem's Daman Site receives 7 Observations - Drugs Exposed to Shortages

Alkem Laboratories’ manufacturing facility located at Amaliya, Daman, India, underwent a U.S. FDA inspection from April 20, 2026 to May 1, 2026 concluded with the issuance of 7 form 483 observations. The inspected site is one of Alkem’s largest U.S.-focused manufacturing facilities and plays a critical role in supplying multiple high-volume generic products to the U.S. market.

 

·         Facility Profile: The Amaliya, Daman facility manufactures 68 generic products for the U.S. market, including tablets, capsules, oral suspensions, solutions, ER/DR formulations, syrups, granules, and nasal sprays.

 

·         Top Generic Products Manufactured: Amlodipine Besylate, Quetiapine Fumarate, Gabapentin, Aripiprazole, Cephalexin.

 

·         Products Likely Exposed to Shortages (Based on Market Share >20%, Sales >$3Mn & No Backup Manufacturing): 6 products are exposed to shortages in the event of an escalation of the GMP issue.

 

·         Revenue Contribution: The Daman facility contributes significantly in annual U.S. generic sales, accounting for large portion of Alkem Laboratories’ total U.S. generic revenue.

 

·         Backup Coverage: A significant portion of the sales from this facility are supported through alternate manufacturing sites.

 

·         Financial Impact: Due to the facility’s high contribution to Alkem’s U.S. generics business and significant non-backed-up product exposure, prolonged remediation timelines or regulatory escalation could affect future ANDA approvals, increase compliance-related expenses, and create supply risk for high market share products.

 

·         Inspection History: The facility showed improved compliance after a 2018 VAI classification, with subsequent NAI outcomes. However, the latest Form 483 indicates renewed FDA scrutiny at the site.


The Form 483 observations indicate potential compliance concerns related to manufacturing practices, quality systems, or product safety; however, the company has committed to addressing all observations within the stipulated timeline. While no major enforcement action has been initiated, timely remediation will be important to avoid potential impact on current supply and future approvals. The recent EU GMP certification from the Malta Medicines Authority also suggests that the facility maintains acceptable compliance standards under European regulations.

 

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