Deal with Daiichi on, insists Ranbaxy Labs chief

New Delhi: Ranbaxy Laboratories chief Malvinder Mohan Singh on Monday insisted that the company’s sale to Japan's Daiichi Sankyo Co would not be affected after it was reported that the US government was suing the drugmaker for alleged fraudulent practices.

''People are trying to create confusion and obviously somebody is trying to bring our price down so that they can (buy) at a lower price,'' said Singh, Ranbaxy’s chairperson and managing director, at a press conference in Delhi. Singh’s statement came after the company shares had their worst fall in 17 years.

Ranbaxy rubbished allegations that Daiichi was unaware that USA’s Food and Drug Administration was investigating the drugmaker before the deal was signed.

Singh said Daiichi Sankyo was ''aware of these issues while conducting due diligence. There is no change in the deal and there is no exit clause in it. He also insisted that the US FDA query was a routine motion to seek clarity.

Market analyst S P Tulsian said the company’s statement should encouraged the market.: When we see the chairman of the company giving a statement, I think it gives confidence that probably the Daiichi deal is on,” said Tulsian.

Ranbaxy's stocks are up again and investors seem to have put their fears away—for now.

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