The Hindu Business Line : ‘This sale is for strategic growth’

New Delhi, June 11 Mr Malvinder Singh’s move to exit Ranbaxy has taken many by surprise. Here he explains the reasons and the future strategy for India’s largest pharmaceutical company.

Why have you decided to sell out to Daiichi Sankyo?

This is not a sell out. This is for strategic growth. Ranbaxy is very much an Indian company even now and I am still a part of this company. I am committed to take this company to the next level of growth. It was an emotional decision for the promoter family but we had the best interest of the shareholders and the employees in mind.

But why have you taken this step now when Ranbaxy is doing well and has a strong pipeline of products?

Why not now? There is nothing called perfect timing. This is a historic deal as it will redefine the future of pharmaceutical industry. The deal will strengthen Ranbaxy’s global presence as also enhance our product offering ranging from new chemical discoveries to cheap generic drugs. We will leverage each others’ strengths to transform the way we do business. This is a new business model which combines the power of innovation and generics. This is the largest transaction of any listed company in the Indian market.

Some analysts say that this deal could be an indication to an impending downturn in generics business. Would you agree?

In fact there is tremendous opportunity in the generics space in terms of patent expiry. Ranbaxy is well positioned to capitalise on opportunities in the generic space. We have a very strong mix of emerging and developed markets and also have a very strong portfolio of first-to-file products. I see substantial opportunity in the generic space on the global basis.