Arun Sawhney to replace Atul Sobti as Ranbaxy CEO
Sobti’s exit comes at a time, when the company seems to have seen the worst of its regulatory problems in the US which has dragged its revenues for several quarters.
By ET Bureau & Agencies |
NEW DELHI: Ranbaxy Laboratories Ltd's managing director and chief executive officer Atul Sobti will step down from his positions effective Aug 19, India's top drugmaker by sales said on Thursday. (Watch)
Arun Sawhney, who is currently president of Ranbaxy's global pharmaceutical business, will take over as managing director, Daiichi Sankyo -controlled Ranbaxy said in a statement. Sobti is stepping down after just over a year in the top spot. No reason was given for his departure.
This is the second major reshuffle in the Gurgaon-based company after Daiichi Sankyo bought a 64% stake in Ranbaxy in 2008 by buying out the the 35% equity stake hold by founder family held by the Singh brothers.
Daiichi Sankyo had then asked Malvinder Singh to continue as CEO and MD of the company.
The Japanese company also made him the chairman of the company besides making him a member of the 'Senior Global Management' team of Daiichi Sankyo.
But Mr Singh resigned prematurely in May 2009 before his five year term, pocketing $10 million as severance package. Mr Sobti, the then COO was immediately elevated as the CEO and MD of the company with a three year term expiring in May 2012.
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Sobti’s exit comes at a time, when the company seems to have seen the worst of its regulatory problems in the US which has dragged its revenues for several quarters.Mr Singh left the company at the peak of its bad times, when Ranbaxy was posting huge losses including three successive quarters prior to his exit. But in the last quarter ended March 2010, the Gurgaon-based company reported its best ever quarterly sales of $500 million.
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