May 15 (Bloomberg) -- Daiichi Sankyo Co. said Chairman Takashi Shoda, who headed the drugmaker through its acquisition of India’s Ranbaxy Laboratories Ltd., is stepping down.
Shoda, 65, was Daiichi Sankyo’s chief executive officer in 2008, when it agreed to buy the Indian maker of generic medicines. Tokyo-based Daiichi agreed to sell its controlling stake in Ranbaxy last month after taking writedowns and struggling to turn around the business.
Since Daiichi Sankyo agreed to buy a controlling stake in Ranbaxy for about $4.6 billion six years ago, the Indian drugmaker has had four plants banned from exporting drugs to the U.S. In May 2009, Daiichi Sankyo posted a record full-year loss because of a writedown connected to Ranbaxy.
Daiichi Sankyo’s stock dropped 36 percent between the days it announced the acquisition and the subsequent sale to Sun Pharmaceutical Industries Ltd. The Japanese company aims to recover losses from Ranbaxy through the Sun Pharma deal, Joji Nakayama, the Japanese company’s chief executive, said in April.
Shoda will take the new position of senior corporate adviser after a shareholders meeting, Daiichi Sankyo said in a statement today. A company spokesman declined to comment beyond what was stated in the statement.
Daiichi Sankyo owns 63 percent of Ranbaxy and agreed in April to sell its stake to Sun in a stock swap. It will get 0.8 share in Sun for every one Ranbaxy share, or 457 rupees a share, based on the stock price when the announcement was made. Daiichi bought the stake in Ranbaxy for 737 rupees a share.
Three months after Daiichi Sankyo agreed to buy the controlling stake in Ranbaxy, the FDA barred imports from the Indian drugmaker’s Paonta Sahib and Dewas plants because of manufacturing defects.
Daiichi today forecast a 28 percent increase in full-year profit. The stock traded 0.3 percent lower at 1,703 yen at 2 p.m. in Tokyo trading today.
To contact the editors responsible for this story: Anjali Cordeiro at firstname.lastname@example.org Jason Gale