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
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 and baseless.
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
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, as follows:
"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
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.
SOURCE: The Press Office of the Singh Family
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