Press Statement on Behalf of the Singh Family (The Former Shareholders and
Founders of Ranbaxy)
GURGAON, India, May 23, 2013 /CNW/ - On 22 May 2013, Daiichi Sankyo released a
press statement where, among other things, it was stated that it "believes
that certain former shareholders of Ranbaxy concealed and misrepresented
critical information concerning the US DOJ and FDA investigations".
The phrase is an obvious reference to the members and companies of the Singh
family who were shareholders of Ranbaxy.
Daiichi Sankyo's allegations of concealment and misrepresentation are false
Daiichi Sankyo purchased the Singh family's 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 Mr. Takashi Shoda,
Daiichi Sankyo's current Representative Director and Chairman and Dr.
Tsutomu Une, Executive Director, who is also the current Chairman of
Ranbaxy. They and Daiichi Sankyo were legally advised.
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.
At the request of Daiichi Sankyo, Malvinder also agreed to continue at Ranbaxy
for a period of 5 years. Malvinder left Ranbaxy in the middle of 2009. When he
left, Dr Tsutomu Une of Daiichi Sankyo sent him a personal letter of
appreciation to thank him for the many valuable contributions made by him and
the Singh family to Ranbaxy. In that letter, Dr Une said, among other things,
"On behalf of the board members of Ranbaxy Laboratories Limited, we greatly
appreciate the many valuable contributions made by you and your family to
Ranbaxy. Under the leadership of your family, Ranbaxy has grown from a small
pharmaceutical company providing pharmaceutical products to the people of
India in the early years of the last century to an international generics
giant that today has sales of several billion dollars and customers on every
continent and competes internationally with the best in the industry."
As late as April 2012, Malvinder was invited by Ranbaxy to attend a launch of
Ranbaxy's new product. Dr Une met Malvinder at that launch. There was no
suggestion by Dr Une or anyone else on behalf of Ranbaxy or Daiichi Sankyo at
that time that there was any concealment or misrepresentation.
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 to protect itself
and its shareholders in the negotiations and agreement with the Singh family
shareholders of Ranbaxy.
It was 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 DOJ. 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.
Raghu Kochar firstname.lastname@example.org Mobile : +919811617256
SOURCE: The Press Office of the Singh Family
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CO: The Press Office of the Singh Family
-0- May/23/2013 14:49 GMT
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