Ranbaxy has claimed that a pharmaceutical company is making a concerted effort to depress the company's share price by initiating the accusations that the generics manufacturer falsified data to achieve compliance.
The Indian company was seeking to allay investors' fears that the deal with Daiichi Sankyo, which is binding and final according to Ranbaxy, would be scuppered by the accusations. In clarifying the situation Malvinder Singh, Ranbaxy's CEO, said he believed that the falsification claims were orchestrated by a big pharma company acting in cahoots with elements in India. Speaking to the media Singh said: "I understand that there are rumours in the market where a big pharmaceutical company and a multinational corporation, a leading Indian company and certain stock brokers out there are trying to create uncertainty, bring the price down and take advantage of the situation. "Daiichi Sankyo and Ranbaxy deal is absolutely on track and there are no changes. The deal of Daiichi Sankyo and Ranbaxy stands, it is a binding deal." Singh stopped short of naming any of the parties believed to be involved but did say that Ranbaxy is currently collecting data from the market with the intention of providing relevant information to the authorities in the future. In doing so Ranbaxy has gone on the offensive after seeing its share price fall by 23 per cent over two days. As a result of Ranbaxy's response its stock price rose by 15 per cent. Ranbaxy's stock price tumble followed the US Department of Justice filing documents with a district court in Maryland covering whether Ranbaxy had falsified data to achieve compliance with US regulations. The FDA's filing is the latest twist in its three-year investigation into Ranbaxy's operations, which has seen the agency raid the company's US headquarters and New Brunswick manufacturing facility.
Ranbaxy's statement played down the significance of the FDA's latest move. Singh said: "This is a motion to seek information and there is nothing beyond that. Any information they need will be sent to them in the next few days.
"Our technical consultants Parexel will provide the US authorities the requisite information in the next 2-3 weeks. It is our understanding with them that this motion will be recalled once we submit all documents."