Malvinder Singh, chairman and managing director of Ranbaxy Laboratories, on Wednesday blamed corporate rivals for this week's sharp plunge in his company's share price, saying a multinational company was behind the hammering.
Ranbaxy shares fell almost a quarter through Monday and Tuesday after news reports said the US Federal Drug Administration had ordered a probe into allegations of substandard drugs being sold by the company in the US.
“A multinational company and a leading Indian company along with some brokers are deliberately spreading rumours in the wake of a motion filed in the U.S. so that its share price come down and they can corner the company shares,” Singh said.
Singh refused name the companies, but his comments helped Ranbaxy shares stage a comeback in Wednesday's trading with a gain of about 15 per cent.
Some reports had suggested that the US probe could have bearing on a planned sale of the promoters' stake in Ranbaxy to Japanese drug maker Daiichi Sankyo. Singh said "the deal with Daiichi Sankyo is binding and remains on track. There is no exit clause in the agreement.”