A corporate tussle is playing out in the Delhi High Court over the legal right to a company’s name, with two pharma companies locked in a bitter battle. Listed pharmaceutical company Alkem Laboratories has filed a case against IPO-bound Allchem Lifescience Limited, over the name of the company, alleging trademark infringement.
As per an addendum in the Allchem Lifescience’s DRHP - with market regulator Sebi – listed pharma player Alkem Labs has filed a suit against the company before the Delhi High Court. The lawsuit has alleged an infringement of Alkem Labs’ trademark with respect to the use of the name Allchem. In its submission, Alkem Labs has sought a permanent injunction on the use of the trademark along with damages of Rs 2 crore for the alleged loss of goodwill. The case was filed on April 23, and the Delhi High passed an order on April 24, directing both parties to the Delhi High Court Mediation and Conciliation centre.
Allchem has submitted before the court that in all future communications related to the public offer, Allchem will carry a disclaimer that it is not associated with Alkem Labs in any manner. Both Alkem and Allchem participated in the mediation and reconciliation at various dates, the last one being on June 11, with the next hearing in the Delhi High Court is now slated on July 9.
As per Sebi’s regulation, an IPO-bound company is required to share addendums in the risk factors section of its draft red herring prospectus.
Pharma veterans have said that while the spelling of both the names are different, pronunciations are similar, hence it may be a challenge to market the products, which is being seen as a premise for the legal battle.
Allchem Lifescience had filed papers with Sebi for IPO in March this year to raise around Rs 190 crore through an IPO. The Vadodara-based company is in the business of pharmaceutical ingredients and was established in 2017, with Bipin Patel, Kantilal Ramanlal Patel, and others as promoters.
On the other hand, Alkem Laboratories is a listed pharma company with a market capitalization of close to Rs 58,000 crore. The company was established in the year 1973 by two brothers from Bihar, Samprada Singh and BN Singh.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.