Daiichi deal on track, says Ranbaxy as scrip recovers

July 16th, 2008 - 4:26 pm ICT by IANS  

New Delhi/Mumbai, July 16 (IANS) Even as its scrip recovered after taking a beating in the past two days, India’s top drug maker, Ranbaxy Laboratories, Wednesday said its takeover by Japan’s Daiichi Sankyo is on track. It also said it would provide US authorities all information on alleged sale of adulterated drugs in that country, and that no formal charges have been pressed against it.

“The (Daiichi) deal is absolutely on track. There are no changes,” Ranbaxy chief executive and managing director Malvinder Singh said.

Additionally, Daiichi was aware of the alleged drug sale issue in the US, he added.

The United States Food and Drug Administration (USFDA) has charged Ranbaxy with violating federal laws by selling adulterated and misbranded drugs in the US.

Ranbaxy’s shares tumbled 23 percent over the past two days after concerns were raised that the USFDA would initiate punitive action against the company.

But Wednesday, Ranbaxy shares bounced back and vaulted 11.42 percent to Rs.46.75 in intra-day trading.

On the Bombay Stock Exchange, the scrip opened at Rs.430 in the morning, touched a high of Rs.458.9 and was trading at Rs.456 at afternoon trade, up by nearly 12 percent.

On the National Stock Exchange, its shares were trading at Rs.463, up 13.58 percent to Rs.53.80. The shares opened at Rs.417 in the morning trade.

The USFDA allegation also led to speculation that the $4.6-billion deal with the Japanese drug maker would get derailed.

Singh said the firm was ready to give all information to the USFDA in the next one month.

“Our intention is within the next month all the information that they want will be available to them. We are confident that once we provide and put up our case before the US authorities, the motion will be recalled. No charges have been filed against us,” Singh said.

Singh said it was business as usual in the US. “There’s absolutely no change. Our business in the US is growing and doing well. We are getting approvals from multiple plants. We will be launching products in America,” he said.

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