Unichem Lab extends Thursday's slump

Meanwhile, the SP BSE Sensex was down 270.12 points or 1.06% at 25,102.63.

On BSE, so far shares were traded in the counter as against average daily volume of 25,107 shares in the past one quarter.

The stock hit a high of Rs 206.90 and a low of Rs 196 so far during the day. The stock had hit a 52-week high of Rs 241.45 on 4 July 2014. The stock had hit a 52-week low of Rs 138 on 7 August 2013.

The stock had outperformed the market over the past one month till 10 July 2014, advancing 1.37% compared with Sensex’s 0.82% fall. The scrip had, however, underperformed the market in past one quarter, declining 7.42% as against Sensex’s 11.7% rise.

The small-cap pharmaceutical company has equity capital of Rs 18.13 crore. Face value per share is Rs 2.

Shares of Unichem Laboratories (Unichem) have declined 9.63% in two trading sessions from Rs 217.45 on 9 July 2014, after the company during market hours on Thursday, 10 July 2014 said that the European Commission decided to impose a fine on Niche/Unichem (jointly and severally). The stock had tumbled 6.2% to settle at Rs 203.95 on Thursday, 10 July 2014.

Unichem said that 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 (Niche), agreed to settle financially crippling patent litigation with Laboratories Servier (Servier) at the beginning of 2005, Unichem said in a statement.

Unichem said it vehemently denies 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, the company said in a statement.

Unichem cannot in any way see how it can be held accountable for what was in any event a pro-competitive act on the part of its than only part-owned subsidiary Niche, Unichem said in a statement.

Unichem said it 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 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, the company said in a statement.

Unichem Laboratories’ net profit fell 1.8% to Rs 30.48 crore on 1.6% decline in net sales to Rs 237.49 crore in Q4 March 2014 over Q4 March 2013.

Unichem Laboratories is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India and several other markets across the world.