The Singh brothers (Malvinder and Shivinder), the erstwhile promoters of pharmaceutical major Ranbaxy group, on Thursday said Daiichi Sankyo’s, allegations of concealment and misrepresentation of facts during the sale of shares of the company were “false and baseless”.
"Daiichi Sankyo purchased the Singh family's interests in Ranbaxy in 2008 after a long negotiation process, as is typical of deals of this magnitude, and after conducting full due diligence on the affairs of Ranbaxy,” the brothers said in a statement here.
They said during the negotiation process, Daiichi Sankyo and its representatives were made aware of the ongoing US Food and Drug Administration and Department of Justice investigations.
They were also given full access to the documents at Ranbaxy pertaining to US FDA and DoJ investigations, the added.
“The belated suggestion, made years after the fact, that information was concealed from and/or misrepresented to Daichii Sankyo is false and designed to divert attention away from Daiichi Sankyo's own failures to protect itself and its shareholders in the negotiations and agreement with the Singh family shareholders of Ranbaxy,” the statement said.
“It is unfortunate that having made that decision, Ranbaxy’s largest shareholder, Daichii Sankyo, is now trying to shift the blame as regards Ranbaxy’s current situation away from itself. That is, of course, very convenient," the brothers claimed.
Ranbaxy was acquired by the Daiichi Sankyo Group in 2008 after Japan’s third largest drugmaker bought 34.82 per cent stake from its promoters, Malvinder Singh and family.