Former Ranbaxy Executives Lose Dispute to Daiichi Sankyo
The former sellers of shares of Ranbaxy Laboratories, which included RHC Holding Private Limited, have been ordered by an arbitration court to pay damages of 25.63 billion rupees ($385 million) to Daiichi Sankyo Co Ltd. to settle a dispute regarding the acquisition of Ranbaxy by Daiichi. Sun Pharma acquired Ranbaxy in 2015 for $3.2 billion plus the assumption of $800 million in debt from Daiichi Sankyo, which held a controlling stake in Ranbaxy, which it acquired in 2008/2009. The sale of Ranbaxy to Sun Pharma followed multiple manufacturing problems at Ranbaxy, which included an US Food and Drug Administration (FDA) import alert for active pharmaceutical ingredients manufactured at Ranbaxy’s facility in Toansa, India.
The announcement was made by RHC Holding, in which former Chairman, MD and CEO of Ranbaxy Laboratories Malvinder Singh is a director. Singh sold his personal stake in Ranbaxy to Daiichi Sankyo,
In a statment, RHC Holding said it is exploring legal options to challenge the majority award.
Source: RHC Holding Private Limited