Ranbaxy-Daiichi Sankyo deal to be completed by Dec

New Delhi: Ranbaxy Pharmaceuticals said the agreement with the Japanese pharma major Daiichi Sankyo will be completed in the next one month.

Ranbaxy’s Chief Executive Officer and Managing Director, Mr Malvinder Mohan Singh, said the acquisition by the Japanese company will be completed by December.

The deal includes Daiichi buying promoters’ stake in Ranbaxy, acquisition of 20 per cent of company’s equity capital through an open offer to shareholders and issue of warrants and shares on a preferential basis.

Mr Singh also said the company is continuing its dialogue with the US drug regulator to ensure that the ban on import of its drugs is lifted.

“We are doing our best and responding to every issue being raised by the FDA. We remain confident about the efficacy of our drugs and hope will be able to convince the FDA soon,” he told reporters on the sidelines of a seminar on trilateral trade between India, Brazil and South Africa.

Despite the ban by the US authorities, Daiichi Sankyo said it will go ahead with the earlier announced deal to acquire Ranbaxy’s shares at Rs 737 even as the Indian company’s market capitalisation fell to one-third of the June offer.

The Japanese company said it will follow accounting standards to determine valuation losses if Ranbaxy’s share price continues to spiral downwards.