Unichem Labs shares drop 5% on €19.49-mn notice from European Commission

Unichem Laboratories' stock fell 5 per cent after a demand notice from the European Commission for a fine of Euro 19.49 million

Shares of Unichem Laboratories fell nearly 5 per cent on Friday after receiving a demand notice from the European Commission for a fine of Euro 19.49 million in the Perindopril drug matter. 

 

The pharmaceutical company's stock fell as much as 4.9 per cent during the day to ₹482 per share, the biggest intraday fall since August 5 this year. The stock pared losses to trade 2.2 per cent lower at ₹495.8 apiece, compared to a 0.35 per cent decline in Nifty 50 as of 10:27 AM. 

 

Shares of the company snapped a three-day winning streak and currently trade at 19 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 33 per cent this year, compared to a 7.2 per cent advance in the benchmark Nifty 50. Unichem Lab has a total market capitalisation of ₹3,492.13 crore.  

 

Unichem Labs receives Euro 19.49 million demand notice

Unichem Laboratories received a demand notice from the European Commission, Brussels, for payment of a fine of Euro 19.49 million in the Perindopril drug matter. The amount comprises a principal penalty of Euro 13.97 million and interest of €5.52 million, according to an exchange filing. 

 

The company said its wholly owned subsidiary has already remitted Euro 2.79 million in instalments, leaving a balance of Euro 16.70 million payable. Unichem had earlier provided for the principal amount in its books, but the interest liability will now be accounted for in FY 2025-26.

 

The case relates to allegations that Unichem and its subsidiary, Niche Generics Ltd, breached European Union competition law by settling a Perindopril patent dispute with Servier Group in 2005. Unichem added that it is evaluating legal options in consultation with its law firm. 

About Unichem Labs 

Unichem Laboratories Ltd. is a pharmaceutical company committed to delivering better health through superior products. Unichem has several pharma products that address the needs of relevant and growing therapeutic areas like gastroenterology, cardiology, diabetology, psychiatry, neurology, anti-bacterial, anti-infectives, and pain management.

 

Unichem is headquartered in Mumbai, India, and has six drug manufacturing locations across the country. As per its official website, in keeping with its commitment to benchmark quality standards, several of the company’s facilities have been accredited by reputed international organisations such as the US FDA, UK MHRA, ANVISA (Brazil), COFEPRIS (Mexico), PMDA (Japan), EUGMP, EDQM (Europe), WHO (Geneva) and TGA (Australia).