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Shares of Glenmark Pharmaceuticals fell as much as 3.5 per cent to Rs 545.10, their lowest since June 8.
The stock plunged as the Competition Commission has imposed a penalty totalling nearly Rs 47 crore on Glenmark Pharmaceuticals, its three officials, two other pharma companies and four Gujarat-based chemists’ associations for indulging in unfair business practices. Besides, a carry and forward (C&F) agent has been penalised.
All the entities have been fined for violating competition norms with regard to mandating no-objection certificates from the associations prior to appointing entities as stockists.
CCI has also directed the entities to "cease and desist" from indulging in "the practice of mandating NOC, which has been held to be anti-competitive".
Three pharma companies -- Glenmark, Divine Savour Pvt Ltd and Hetero Healthcare Ltd -- have been fined. Fines have also been imposed on carry and forward agent B M Thakkar & Co, Federation of Gujarat State Chemists & Druggists’ Association and its three constituent associations as well as their officials.
Glenmark could not be immediately reached for comment. The stock had fallen 5 per cent this year as of last close compared to the Nifty Pharma index's 4.7 per cent fall.
(With inputs from Reuters)
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