Unichem Laboratories Faces ₹175 Crore EU Penalty in Perindopril Case

Unichem Laboratories announced on September 18, 2025, that it has received a demand notice from the European Commission, seeking payment of €19.49 million (about ₹175 crore) in connection with the perindopril drug case. The notice, received on September 17, highlights penalties and interest charges related to a patent settlement dating back to 2005.

Details of the Demand Notice

According to the company, the notice includes a principal penalty of €13.97 million and accrued interest of €5.52 million. Its subsidiary, Niche Generics Ltd, has already paid €2.79 million in instalments, leaving a balance of €16.70 million still to be paid.

Background of the Perindopril Case

The penalty stems from allegations that Unichem and its wholly-owned subsidiary breached EU competition law in 2005 by settling a patent dispute with France’s Servier Group over the blood pressure drug perindopril. The European Commission had communicated its order earlier, with Unichem informing stock exchanges about the development in June 2024.

Financial Impact on Unichem

Unichem has clarified that while provisions for the principal penalty were already made in its books, the additional interest liability of €5.52 million will now be recorded in its financial statements for FY26. This additional burden could have implications for the company’s reported earnings in the next financial year.

Company’s Response and Next Steps

In response to the demand notice, Unichem stated that it is evaluating legal options in consultation with its law firm. The company has not disclosed whether it intends to appeal or seek a revision of the penalty but noted that all regulatory requirements have been met.

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Conclusion

The European Commission’s penalty adds fresh pressure on Unichem Laboratories as it deals with the financial and reputational fallout of the perindopril case. With part of the penalty already paid and provisions made for the rest, the company now faces the challenge of managing the additional interest liability while exploring legal avenues to contest the demand.

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