Daiichi Sankyo's acquisition of majority shareholding in Ranbaxy Laboratories will be completed in the next one month, Ranbaxy Chief Executive Officer and Managing Director Malvinder Mohan Singh said on Tuesday.
The government cleared the decks last month for the deal that is valued at $3.4-4.6 billion (about Rs 15,000-20,000 crore), depending on the subscription to the open offer and exercise of warrants. The deal includes Daiichi buying promoters stake in Ranbaxy, acquisition of 20 per cent of the company's equity capital through an open offer to shareholders and issue of warrants and shares on a preferential basis.
Singh also said the company is continuing its dialogue with the US drug regulator to ensure the ban on import of its drugs is lifted. "We are doing our best and responding to every issue being raised by the FDA. We remain confident about the efficacy of our drugs and hope will be able to convince the FDA soon," he told reporters on the sidelines of a seminar on trilateral trade among India, Brazil and South Africa.
The US drug regulator, citing manufacturing issues at two of Ranbaxy's plants in India, banned import of 30 drugs.
It, however, said that it did not have any issue with the quality of these drugs. The list of drugs includes valacyclovir hydrochloride, for which Ranbaxy entered into a settlement with GlaxoSmithKline Pharmaceuticals.
The company plans to launch the drug in the US in late 2009 with 180 days exclusivity, but the current restrictions may pose hurdles in the company's path.
"We will ensure that our first-to-file drugs hit the market," Singh said, indicating the company may shift manufacturing of the drug to those facilities, which have regulatory clearances.
