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INDIA BUSINESS WORLD - October 1st - October 15th - 2008
RANBAXY GETS RELIEF IN US AUDIT CASE
Ranbaxy reiterated that it was confident of coming clean in the investigations. “The US department of justice has now been provided with a comprehensive set of audit documents based on instructions by Ranbaxy Laboratories, which will help resolve the questions raised by the US government about the company’s business practices and standards. Ranbaxy remains confident that its pharmaceutical products are safe and effective and remains committed to cooperatively working with all regulatory and legislative authorities, “ the company said in a statement reacting to the withdrawal of the motion.
The US is the company’s single largest market, accounting for about a quarter of its $1.6 billion sales in 2007. Following FDA’s action, health regulators of other European countries have also said that they will independently review Ranbaxy’s drugs manufactured in India. Analysts say DoJ’s move is expected to have a positive impact on the image of Ranbaxy globally although it is yet to tide over its problems with the US drug regulator.
Meanwhile, Daiichi Sankyo, which is in the process of acquiring Ranbaxy, said that it remains on track to acquire Ranbaxy even as the Indian company’s share price fell to one- third of its June 11 offer. “The price of Rs 737 is fixed. If Ranbaxy’s stock price continues to move this way, we will follow accounting standards and consult with our accountants to determine valuation losses, “ agencies said quoting Daiichi Sankyo CEO Takashi Shoda as . Mr Shoda said that it had not expected the issue to escalate so much. “Of course, we were aware of the issue and included it in the due diligence process. The only difference was we thought Ranbaxy could handle the issue before receiving the FDA’s warning letter,” he added.
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