Ranbaxy's former promoters deny Daiichi Sankyo allegations - NDTV

New Delhi: Former promoters of Ranbaxy on Thursday rebutted the current Japanese owner's allegations of hiding information on US probe into drug adulteration, saying they did not misrepresent any facts or falsify any data. Malvinder Mohan Singh, former promoter of Ranbaxy, said he was shocked at allegations made by Daiichi Sankyo and asserted the Indian promoters never concealed any fact at the time of selling 34.82 per cent stake to the Japanese firm for about Rs 10,000 crore. "We strongly deny that Singh family falsified any data. There was no concealment of facts," said Mr Singh, who is also executive chairman of Fortis Healthcare. (Read full statement) Daiichi had on Wednesday threatened to sue the Singhs for allegedly concealing and misrepresenting critical information about US investigation into sale of adulterated drugs. "Allegations of concealment and misrepresentation are false and baseless. I don't kn ow where it came from... There's no concealment or misrepresentation of anything," he said. Daiichi conducted a detailed due diligence before buying a stake in Ranbaxy, he said expressing surprise at the Japanese firm making the allegation five years after Singhs sold a majority stake in Ranbaxy to them. The Japanese firm went in to the deal after satisfying itself with its due diligence, with knowledge of the US DoJ and FDA probe and with the benefit of legal advice, he added. "I am talking to you today not because of their (Daiichi) success or failure. I am talking to you today because they have raised a finger at us. We built this company over decades with hardwork and cannot let anyone soil our reputation," he said. He claimed the Japanese firm was making the allegations to divert attention from its own failures. Last week, Ranbaxy pleaded guilty to "felony charges" relating to manufacture and distribution of certain adulterated drugs made at two plants in India and agreed to pay $500 million in settlement with the US authorities. Shares in Ranbaxy, on Thursday, slumped by nearly 9 per cent to end at Rs 393.15 apiece on the BSE. "The belated suggestion, made years after, is false and designed to divert attention away from Daiichi Sankyo's own failures to protect itself and its shareholders," the Singhs said. Referring to Ranbaxy's recent $500-million settlement with FDA, he said, "The decision to enter into that settlement agreement was made by Ranbaxy and had nothing to do with the Singh family which was not even consulted by Daiichi Sankyo/Ranbaxy." The Japanese parent of Ranbaxy had yesterday stated that it believed that "certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning the US Department of Justice and Food and Drug Administration investigations." Daiichi, however, did not name the Singhs in its press statement late on Wednesday. < p>Daiichi is currently pursuing its available legal remedies and cannot comment further on the subject at this time, the company had said. On being asked if the Singh family is planning any legal recourse to countenance the allegations he said, "I do not want to get into that at this point in time. Whatever we need to do, we will do. There is nothing wrong that we have done". "At every step of the way during the negotiation process, Daiichi Sankyo and its representatives were made aware of the on-going US FDA and DOJ investigations. They were also given full access to the documents at Ranbaxy pertaining to US FDA and DOJ investigations," he added. It has been recently reported that Ranbaxy had entered into a settlement agreement with the US FDA and DoJ in relation to their investigations and that under that settlement agreement, Ranbaxy agreed to pay large penalties to the US FDA and US Department of Justice. "It is unfortunate that having made that decisio n, Ranbaxy's largest shareholder, Daichii Sankyo, is now trying to desperately shift the blame as regards Ranbaxy's current situation away from itself," the statement said. Ranbaxy became a part of the Daiichi Sankyo Group in 2008 when Japan's third largest drug-maker bought a majority stake in the Indian firm. Daiichi had bought 34.82 per cent stake in the Gurgaon-based firm from its promoters. In 2008, the USFDA had banned 30 generic drugs produced by Ranbaxy at its Dewas and Paonta Sahib units, citing gross violation of approved manufacturing norms. Meanwhile, Ranbaxy has said that it has taken several steps in recent years, including investment of $300 million across manufacturing facilities to ensure safety and efficacy of its products in the global market. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEyddSd_VKnJECdmMGMpiwZ71WRBA&url=http://profit.ndtv.com/news/corporates/article-daiichi-sankyos-allegations-false-baseless-ranbaxys-former-promoter-322572

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