Daiichi considering legal actions against Ranbaxy promoters

There are indications that Japan's Daiichi Sankyo Co. Ltd, which owns India based drug maker Ranbaxy Laboratories Ltd, is considering legal action against former promoters of the company in order to recover the $500 million in fines that it had to pay to the US Food and Drug Administration for setting civil and criminal charges against the company.

Daiichi Sankyo said in a statement that the promoters revealed details about the criminal investigation initiated by the US department of justice and the drug regulator against Ranbaxy after several years since Daiichi acquired Ranbaxy in 2008. It also claimed that the Ranbaxy promoters concealed critical information at the time of the acquisition deal. Daiichi also said that it has spent $300 million in order to upgrade the company's compliance standards and also correct wrong acts of the previous management.

"Daiichi Sankyo believes that certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning the US DoJ and FDA investigations. Daiichi Sankyo is currently pursuing its available legal remedies and cannot comment further on the subject at this time," Daiichi Sankyo said a statement on Wednesday.