Ranbaxy slips 2.8% on Daichi's accusation of misrepresenting facts
"It is difficult to predict the outcome of the dispute between Daiichi Sankyo and the Singh brothers, the company has already witnessed the worst.
By ET Bureau |
MUMBAI: Shares of Ranbaxy Laboratories lost 2.80% on Monday after majority shareholder Daiichi Sankyo accused erstwhile owners Malvinder Mohan Singh and Shivinder Mohan Singh of concealing and misrepresenting facts at the time of selling their stake in the company.
ET was the first to report the development in its issue dated November 11.
The accusation was made in an arbitration case filed in Singapore.
Daiichi has sought compensation for losses arising from the $500 million settlement that Ranbaxy was forced to reach with the US Department of Justice in May over accusations that the company faked test results to get approval from the Food and Drug Administration for its medicines.
"It is difficult to predict the outcome of the dispute between Daiichi Sankyo and the Singh brothers, the company has already witnessed the worst. Going ahead, things should improve, however, from near term perspective, we remain neutral on the stock," said Sarabjit Kour Nangra, vice-president research-pharmaceuticals at Angel Broking.
The US subsidiary of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain drugs made at units in India and agreed to pay the money to settle criminal and legal suits.
The company had said on May 22 that it may initiate legal steps against the Singh brothers, who have focused on finance, healthcare and other areas after exiting Ranbaxy.
The Ranbaxy stock lost Rs 11.80 on Monday to close at Rs 410 on the Bombay Stock Exchange.
ET was the first to report the development in its issue dated November 11.
The accusation was made in an arbitration case filed in Singapore.
Daiichi has sought compensation for losses arising from the $500 million settlement that Ranbaxy was forced to reach with the US Department of Justice in May over accusations that the company faked test results to get approval from the Food and Drug Administration for its medicines.
"It is difficult to predict the outcome of the dispute between Daiichi Sankyo and the Singh brothers, the company has already witnessed the worst. Going ahead, things should improve, however, from near term perspective, we remain neutral on the stock," said Sarabjit Kour Nangra, vice-president research-pharmaceuticals at Angel Broking.
The US subsidiary of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain drugs made at units in India and agreed to pay the money to settle criminal and legal suits.
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The company had said on May 22 that it may initiate legal steps against the Singh brothers, who have focused on finance, healthcare and other areas after exiting Ranbaxy.
The Ranbaxy stock lost Rs 11.80 on Monday to close at Rs 410 on the Bombay Stock Exchange.
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