Japanese drug-maker Daiichi Sankyo has said it will help Ranbaxy Laboratories Ltd meet the US Food and Drug Administration’s (FDA) norms to overcome sanctions.
Exports of drugs from Ranbaxy’s Mohali plant in Punjab to the US were banned in September after the FDA claimed that the facility did not meet quality norms laid down by it.
In a meeting with Commerce and Industry Minister Anand Sharma on Thursday, Daiichi Sankyo’s President and CEO George Nakayama said the company will extend technical assistance to help upgrade Ranbaxy’s plants in India that have been hit by the US’quality sanctions, a Commerce Ministry official said.
Daiichi, which owns a controlling stake in Ranbaxy, will focus on the company’s plant in Mohali. “Daiichi is willing to extend help to Ranbaxy so that it can resume exports to the US from the plants from where shipments are currently banned,” the official added.
Earlier in 2008, import alerts were triggered against shipments from two other plants owned by Ranbaxy — in Dewas, Madhya Pradesh, and Paonta Sahib, Himachal Pradesh — following which exports to the US were banned.
In May this year, Ranbaxy pleaded guilty to felony charges related to drug safety and agreed to pay $500-million fine under a settlement with the US Department of Justice.
Interestingly, Daiichi then accused the former shareholders of hiding information regarding US regulatory probes, which was promptly denied by them.
Daiichi had bought a 63.9 per cent stake in Ranbaxy for $4.2 billion (Rs 26,230 crore today) in 2008.
Nakayama assured Sharma of Daiichi’s continued engagement with India and said the company intends to expand its operations.
He said the Japanese company had benefited greatly from its tie-up with Ranbaxy as it helped diversify its presence and enter new markets.