Daiichi Sankyo pledges bold action on Ranbaxy production problems

TOKYO Fri Jan 31, 2014 8:01pm IST

A man rides a motorcycle in front of the office of Ranbaxy Laboratories at Gurgaon, on the outskirts of New Delhi, June 13, 2013. REUTERS/Adnan Abidi/Files

A man rides a motorcycle in front of the office of Ranbaxy Laboratories at Gurgaon, on the outskirts of New Delhi, June 13, 2013.

Credit: Reuters/Adnan Abidi/Files

Related Topics

Stocks

   

TOKYO (Reuters) - Japan's Daiichi Sankyo Co Ltd (4568.T) said it would step up support of Indian drugmaking arm Ranbaxy Laboratories Ltd (RANB.NS) and send personnel to help resolve problems at a factory that U.S. regulators have banned from supplying pharmaceutical ingredients.

"We have already put a lot of effort into our support but that has not been enough," Manabu Sakai, senior executive officer at Daiichi Sankyo, told an earnings briefing on Friday.

"We want to go back and prepare a more aggressive, more drastic response."

Sakai said it was inevitable the incident would affect Daiichi Sankyo's earnings but was unable to give concrete numbers. The company is not thinking about reducing its stake in Ranbaxy, he added, although financial support would be among the actions it will look at.

The U.S. Food and Drug Administration last week banned Ranbaxy's Toansa plant, a key supplier of ingredients to the generic drugmaker's U.S. factory, from sending its products to the United States due to manufacturing violations. It was the fourth Ranbaxy plant to be shut out of the U.S. market.

"There's been a steady increase in the things that we need to do," Sakai said, adding Daiichi Sankyo would dispatch additional personnel to the plant to help sort out problems.

Daiichi Sankyo's shares are down nearly 10 percent since last week's news on the Toansa plant. On Friday, they rose 2.7 percent to 1,723 yen, bouncing from a five-month low hit the day before.

(Reporting by Ritsuko Shimizu; Editing by Edmund Klamann and Mark Potter)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Bird Flu Scare

Bird Flu Scare

India orders culling after bird flu outbreaks in Kerala.  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage