Ranbaxy, India’s largest drugmaker, had its biggest fall in seven years in Mumbai trading after a US legal probe sparked concern that Daiichi Sankyo could scrap its planned $4.6bn takeover (C&I 2008, 12, 5). Ranbaxy dropped 11% and Daiichi Sankyo fell 5.5% in Tokyo. The US is seeking a court order to force Ranbaxy to turn over an audit that it says will prove the Indian company distributed ‘adulterated and misbranded products,’ according to court papers filed in US District Court in Maryland. In a statement, Ranbaxy strongly denied the allegations and pointed out that an investigation has been underway for three years but no charges have been filed. The Daiichi deal is final and binding they said.
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