Alkem Laboratories has denied reports of alleged income tax evasion, clarifying that it cooperated with the Income Tax Department and addressed subsequent queries, following survey proceedings in September 2023.

The drugmaker’s stocks had fallen about 14 per cent on Monday, following source-based reports alleging tax evasion to the tune of ₹1,000 crore and payments to doctors for prescriptions.

The company said the reports were “factually incorrect”, and added, “We would also like to specifically state that we are not aware of any information that could have had an impact on the trading of the Company’s equity shares.”

The company’s stock price recovered, closing down by about 6.63 per cent, at ₹5,060.30, on the BSE at close.