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Ranbaxy blames rivals for share price fall

July 16, 2008 10:42 IST
Last Updated: July 16, 2008 15:21 IST

Ranbaxy Laboratories [Get Quote] on Wednesday hit out at rivals -- "a multinational and a leading Indian company" -- for trying to bring down its share by "spreading confusion and speculation" in the wake of a motion filed in the US accusing it of fraudulent practice and submission of false information to the US FDA.

"There has been speculation in the market due to lack of understanding and we have information that a multinational and a leading Indian company are working in concert to bring our share price down," Ranbaxy Laboratories chairman and managing director Malvinder Mohan Singh told reporters in a conference call.

He accused the rivals of "trying to enter" when the company's share price is down by spreading confusion and speculation.

"I have a clear sense of what is happening. People are trying to create confusion and obviously somebody is trying to bring our price down so that they can come at a lower price," he said.

Singh, however, refused to name the rivals. It may be recalled that Daichii Sankyo is making an open offer starting August 8 and closing on August 27 for acquiring 20 per cent of the Gurgaon-based company after agreeing to acquire promoters' 34.8 per cent stake in Ranbaxy.

Singh said the company was "collecting data from the market" on the alleged bringing down of share prices by the rival so that it could be furnished to the concerned authorities.

The company's share was trading at Rs 452.45, up 10.56 per cent in the afternoon trade on the BSE. It had plunged 14.01 per cent to Rs 409.25 on Tuesday.

Singh said the current motion filed by the US Department of Justice (DoJ) was "just a motion" seeking additional information and clarification, while asserting its deal with Daiichi Sankyo stands.

"We have been cooperating with them (DoJ) and will continue to do so. In the meantime, our business in the US continues as normal," he said.

"There is no disruption as far as our business in the US is concerned. We continued to file for approvals from the US FDA and are also getting it," Singh said.

Dispelling doubts about the deal with Daichii Sankyo after the motion filed by DoJ, he said: "They were aware of these issues while conducting due diligence. There is no change in the deal and there is no exit clause in it."

He also clarified that the company's plant Poanta Sahib, the genesis of probe by the US FDA, continued to supply existing drugs to the US market, while new drugs were being supplied from other manufacturing locations.

Singh also said Ranbaxy's patent settlements with Pfizer [Get Quote] for cholesterol lowering drug Lipitor and Astrazeneca for ulcer drug Nexuim would not be affected by the motion filed by the DoJ.

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