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Daiichi deal on track, says Ranbaxy

Daiichi deal on track, says Ranbaxy
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First Published: Wed, Jul 16 2008. 11 25 AM IST
Updated: Wed, Jul 16 2008. 11 25 AM IST
Reuters
New Delhi: Ranbaxy Laboratories Ltd’s deal for a takeover by Japan’s Daiichi Sankyo remains on track and the Indian firm will give US authorities all information needed for a probe within the next month, it said on 16 July.
US authorities have alleged Ranbaxy, India’s top drug maker by sales, violated federal laws in a way that resulted in the introduction of adulterated and misbranded drugs in the United States.
Details of the investigation sent Ranbaxy shares tumbling 23% in the past two sessions on concerns it would derail the $4.6 billion deal with the Japanese drug maker, but the shares rebounded more than 9% after clarification.
“The deal is absolutely on track,” Ranbaxy Chief Executive Malvinder Singh told a televised news conference.
“There are no changes,” he said, adding Daiichi had gone through a “bunch of things” as part of its due diligence and it was completely aware of the issue with the US authorities.
Earlier this month as part of the investigation, the US Attorney’s Office for the District of Maryland and the Department of Justice’s Office of Consumer Litigation filed a motion seeking enforcement of previous subpoenas for Ranbaxy documents.
The motion said Ranbaxy had failed to produce the subpoenaed documents, claiming they were protected by attorney-client and work-product privileges. Ranbaxy denies the allegations in the motion.
Singh told the news conference the firm was ready to give more information to the authorities.
“Our intention is within the next month all the information that they want will be supplied to them. Our understanding with them (is that) this motion will be recalled once this information is sent,” Singh said.
Ranbaxy has said no charges have been filed against the company. Its share had also been hit by concerns the probe could revenue from one of its key markets.
Singh said Ranbaxy’s business in the United States was going as usual. “There’s absolutely no change. Our business in America is doing well. It is growing,” he said.
“We are getting approvals from multiple plants. We will be launching products in America.”
Ranbaxy shares were up 6.7% at Rs436.70 at 0520 GMT, having risen as much as 9.1%, in a Mumbai market up 1.8%.
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First Published: Wed, Jul 16 2008. 11 25 AM IST