Indian owners of Ranbaxy hid key info on US probe: Daiichi

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: May 23, 2013 01:55 IST

Drug maker Ranbaxy’s Japanese parent Daiichi Sankyo on Tuesday blamed the company’s former Indian owners for concealing and misrepresenting critical information about US probe into sale of adulterated drugs, and said it will pursue legal remedies.

Last week, Ranbaxy agreed to pay $500 (about R2750 crore) as penalty for selling adulterated medicines in the US and lying about it to the authorities.

“Daiichi Sankyo believes that certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning the US Department of Justice (DOJ) and FDA investigations. Daiichi Sankyo is currently pursuing its available legal remedies,” Daiichi Sankyo said in a statement.

The Japanese drug maker had bought Ranbaxy Laboratories for an eye-popping $4.6 billion (about R20,000 crore then) in 2008.  Daiichi had bought 34.8% controlling stake held by Ranbaxy’s founders — Malvinder Mohan Singh and family — at R737 a share. It then made an open offer for up to 20% of Ranbaxy shares that is mandatory under Sebi regulations

Singh did not respond to HT’s phone calls or text messages seeking comments.

In 2008, the USFDA had banned 30 generic drugs produced by Ranbaxy at its Dewas and Paonta Sahib units in India, citing gross violation of approved manufacturing norms. The company has admitted to improperly making these medicines at the two facilities.

“In recent years, we have made significant progress in the way we conduct our business to ensure greater quality control and have made investments of over $300 million in our manufacturing facilities to install state-of-the-art technologies,” Ranbaxy CEO and Managing Director Arun Sawhney said in a statement on Tuesday.

 

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