Daiichi completes acquisition of RanbaxyOctober 20th, 2008 - 10:17 pm ICT by IANS
New Delhi, Oct 20 (IANS) India’s largest pharmaceutical major Ranbaxy Laboratories Monday officially became a subsidiary of the Japanese drug maker Daiichi Sankyo.In a regulatory statement, Ranbaxy said Daiichi has acquired 52.5 percent in it, after the committee of directors approved allotment of equity shares and warrants on preferential basis.
Ranbaxy has now received $736 million or Rs.35.85 billion through the preferential issue of equity shares and warrants , the two companies said in the joint statement.
Ranbaxy will continue to operate as an independent and autonomous company under Malvinder Mohan Singh, its earlier chief executive-promoter, despite being a Daiichi Sankyo subsidiary. Singh will also become a part of Daiichi’s senior global management.
“Two strong presences in innovation and the fast growing business of non-proprietary pharmaceuticals united, this hybrid business model will boost Daiichi Sankyo to achieve our goal to become world-class pharmaceutical innovator, a global pharmaceutical innovator,” said the president and chief executive officer of Daiichi Sankyo, Takashi Shoda, in the statement.
Ranbaxy chief Singh said the deal takes the company into a “new orbit of growth”.
“The substantial cash being infused by Daiichi Sankyo at this stage will be used to expand our business aggressively through the organic and inorganic routes while significantly strengthening our balance sheet, making it leverageable for new initiatives,” he said.