Ranbaxy shares dive over 9% after Daiichi says misled over probes

Ranbaxy shares dive over 9% after Daiichi says misled over probes Mumbai: Shares of Ranbaxy Laboratories on Thursday slumped by over 9 percent in early trade, after its Japanese promoters blamed the company's former Indian owners for concealing and misrepresenting critical information about US investigation into sale of adulterated drugs.

Following the news, shares of the company opened the day on a weak note and further tanked 9.3 percent to Rs 391 on the BSE.

At NSE, the stock tumbled 9.37 percent to Rs 390.65.

Following the weakness in the stock, the market value of the company slipped by Rs 1,527 crore to Rs 16,708 crore.

Ranbaxy's Japanese promoters had yesterday blamed the company's former Indian owners for concealing and misrepresenting critical information about US investigation into sale of adulterated drugs, and said it will pursue legal remedies.

"Daiichi Sankyo believes that certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning the US Department of Justice (DOJ) and FDA investigations. Daiichi Sankyo is currently pursuing its available legal remedies," Daiichi Sankyo had said in a statement.

The Japanese drug maker added that it continues to support Ranbaxy in its efforts to address and correct the conduct of the past which led to the investigations.

Ranbaxy became a part of the Daiichi Sankyo Group in 2008 after Japan's third largest drug-maker bought a majority stake in the Indian firm. Daiichi had bought 34.82 percent stake in the Gurgaon-based firm from its promoters, Malvinder Singh and family.

Last week, pleading guilty to "felony charges" relating to manufacture and distribution of certain adulterated drugs made at two India units, the US subsidiary of Ranbaxy had agreed to pay USD 500 million in settlement with the US authorities.

Meanwhile, in the stock market the BSE benchmark Sensex was trading at 19,756.28, down 305.96 points in afternoon trade.

PTI