European Commission imposes fine on Unichem Laboratories Ltd

On July 9, 2014, the European Commission (the EU's top competition regulator) decided to impose a wholly unjustified fine on Niche/Unichem (jointly and severally) contending that it had acted in breach of EU antitrust rules. The European Commission reached this conclusion because its subsidiary Niche Generics Ltd (Niche) agreed to settle financially crippling patent litigation with Laboratories Servier (Servier) at the beginning of 2005.

Unichem has vehemently denied any wrongdoing on the part of either itself or Niche. Moreover, Unichem was not involved in the agreement to settle the litigation with Servier back in 2005 as it only took full ownership of Niche late in 2006. Unichem cannot in anyway see how it can be held accountable for what was in any event a pro-competitive act on the part of its then only part-owned subsidiary Niche.

Unichem will vigorously appeal the European Commission decision to the EU courts and seek to attain the correct result in this matter a result which is in the best interests of the consumer. While Unichem presses ahead with its intention to have the European Commission's decision overturned it intends to carry on its business as usual.

Shares of UNICHEM LABORATORIES LTD. was last trading in BSE at Rs.203.95 as compared to the previous close of Rs. 217.45. The total number of shares traded during the day was 39648 in over 2344 trades.

The stock hit an intraday high of Rs. 215 and intraday low of 199. The net turnover during the day was Rs. 8118866.

Source : Equity Bulls

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