New Delhi, Feb 26 (IANS): Alkem Labs share price recovered on Monday after it denied reports of tax evasion.

Alkem Labs share price is trading at Rs 5100, down 5.8 per cent. It had fallen to Rs 4652 after reports of alleged tax evasion.

Alkem Labs said it categorically denies these allegations and rumours and stated that information published is factually incorrect.

“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,” Alkem Labs said.

“The company asserts its commitment to compliance and transparency, having fully cooperated with the Income Tax Department officials during their survey proceedings in September 2023. The company had subsequently received certain queries from the IT department, which have been addressed by the company. The company remains committed to follow principles of the best corporate governance and ethical business practices," the company said.

Alkem Labs is a major pharmaceutical company with a market capitalisation of Rs 61,131 crore.

As per a recent report by Motilal Oswal Financial Services, given the highest share of acute therapies in the domestic formulation segment (82% of DF sales), the growth prospects continue to remain hinged on variability of season and acute infections. The company is emphasising on strengthening its position in the Chronic therapies and biosimilars.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)