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Sunday, 26 May 2013

Singh family rebuts Daiichi charges

This story first appeared in DNA Money edition on Friday, May 24, 2013.

The Singh family on Thursday said Daiichi Sankyo’s allegation of concealment and misrepresentation regarding drug research at Ranbaxy Laboratories is false and baseless.

On Wednesday, Daiichi Sankyo said it is weighing legal options to sue the former promoter-shareholders of the New Delhi-based generics drugmaker.

The Singh brothers — Shivinder & Malvinder — had sold Ranbaxy to Daiichi in 2008 for $4.6 billion. Daiichi bought a 51% stake — including 34.8% that the Singhs held — in June 2008.

The Singh family claimed that Daiichi Sankyo purchased their interests in Ranbaxy in 2008 after a long negotiation process, as is typical of deals of this magnitude, and after conducting full due-diligence.

“At every step of the way during the negotiation process, Daiichi Sankyo and its representatives were made aware of the on-going FDA and Department of Justice
investigations. They were also given full access to the documents at Ranbaxy pertaining to the FDA and DoJ investigations,” the Singh family said in a statement.

They added that Daiichi Sankyo went into the deal after satisfying itself with its due diligence and with the benefit of legal advice.

“The belated suggestion, made years after the fact, that information was concealed from and/or misrepresented to Daichii Sankyo is false and designed to divert attention away from Daiichi Sankyo’s own failures,” they said in the statement.

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