A day after Daiichi Sankyo,the Japanese owner of Ranbaxy Laboratories,alleged that the former shareholders of the drug major had concealed and misrepresented critical information concerning the US Department of Justice (DOJ) and Food and Drugs Administration (FDA) investigations while selling the company,Malvinder Mohan Singh,Ranbaxys former promoter and now executive chairman of Fortis Healthcare,
countered the charges as false and baseless.
Daiichi Sankyo purchased the Singh familys interests in Ranbaxy in 2008 after a long negotiation process,as is typical of deals of this magnitude,and after conducting full due diligence on the affairs of Ranbaxy. The negotiations on behalf of Daiichi Sankyo were led by Takashi Shoda,Daiichi Sankyos current representative director and chairman,and Tsutomu Une,executive director,who is also the current chairman of Ranbaxy. They and Daiichi Sankyo were legally advised, Singh said in a statement.
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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. Daiichi Sankyo went in to the deal after satisfying itself with its due diligence,with knowledge of the US DOJ and FDA investigations and with the benefit of legal advice.
Singh said: 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 Sankyos own failures to protect itself and its shareholders in the negotiations and agreement with the Singh family shareholders of Ranbaxy.
Singh asserted that Ranbaxys decision to enter into a settlement agreement with the US FDA and DOJ in relation to their investigations and its decision to pay large penalties to the US FDA and DOJ …was made by Ranbaxy and had nothing to do with the Singh family which was not even consulted by Daiichi Sankyo/Ranbaxy.