Alkem Labs rises almost 4.5%

On Friday, 14th March, there were reports that the CCI has asked Bengal Chemists and Druggists Association (BCDA), its two district committees, Alkem Labs and MacLeods Pharma to refrain from indulging in anti-competitive business practices. CCI found that these two companies had an anti-competitive agreement with BCDA.

The stock exchanges had asked Alkem Labs for a clarification on Monday over this news and the company reverted yesterday evening. The company said, “One individual named, Mr. Shankar Saha alleged that Alkem Laboratories Limited ("Alkem") had breached the provisions of the Competition Act. Pursuant to the said allegations, the final contested order was passed on March 12, 2020 under Section 27(a) of the Competition Act, 2002 (the "Act") whereby Alkem and certain officials of the Company were directed to "cease and desist" from indulging into anti-competitive practices (the "Order"). Alkem and its officials shall file appeals to the Order before NCLAT within the prescribed time.”

The CCI had said in its report that BDCA was already taking steps to stop this and Alkem and Macleods had filed the plea before the Commission that they were indulging in such conduct under threat from BCDA, the CCI said that it had decided not to impose any monetary penalty on the erring entities.

Following this clarification, the stock price is in the green today. The stock opened today with a gain of over 2% at Rs.2377.35 and went on to hit an intraday high at Rs.2424.10, a rise of almost 4.5%.