Unichem Laboratories rose 1.12% to Rs 189.05 at 10:23 IST on BSE, with the stock recovering on bargain hunting after recent steep slide.
Meanwhile, the S&P BSE Sensex was up 177.42 points or 0.71% at 25,184.40.
On BSE, so far 5,885 shares were traded in the counter as against average daily volume of 34,000 shares in the past two weeks.
The stock hit a high of Rs 191 and a low of Rs 188 so far during the day.
Shares of Unichem Laboratories (Unichem) had declined 21.21% in seven trading sessions to settle at Rs 186.95 on Monday, 14 July 2014, from a recent high of Rs 237.30 on 3 July 2014.
Unichem during market hours on 10 July 2014 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 declined 16.34% to Rs 30.19 crore on 9.57% growth in total income from operations to Rs 291 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Saturday, 12 July 2014.
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.
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