Abstract

Japanese pharmaceutical company Daiichi Sankyo Company Limited (Daiichi) had paid US$ 500 million to the US Department of Justice for settlement of felony charges related to drug safety in May 2013. According to the owners of the Daiichi certain former owners of India-based multinational pharmaceutical company Ranbaxy Laboratories Limited (Ranbaxy) had concealed critical information concerning investigation by US Federal Drug Agency and US Department of Justice regarding drug safety during their stake sale in 2008. Though former owners of Ranbaxy had denied all charges made against them, Daiichi had claimed damages from Ranbaxy for losses arising from the US$500 million settlement in an arbitration court in Singapore. The case presents statements of representatives of both companies and relevant facts to understand the controversy. The analysis of the case creates a suitable platform to discuss if the allegations of Daiichi were justified.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand legal issues involved in Merger and Acquisition
• Understanding the reasons for which Japanese pharmaceutical company Daiichi Sankyo Company Limited had accused former owners of India-based multinational pharmaceutical company Ranbaxy Laboratories Limited for concealing and misrepresenting information a
• Analyze if the allegations of Daiichi were justified

Keywords

Ranbaxy, Daiichi, FDA, Malvinder Singh, Shivinder Singh, Merger and Acquisition, Generic Drugs