The proposed acquisition of majority stake in Ranbaxy Laboratories by Japan-based Daiichi Sankyo will not have any impact on the Chennai-based Orchid Chemicals and Pharmaceuticals Ltd, in which Ranbaxy holds 14.7% stake, through its investment arm Solrex Pharmaceuticals. When contacted Orchid’s managing director K Raghavendra Rao said: “We see no impact on us. We have just entered into a business alliance with Ranbaxy and the proposed ownership is nothing to do with the alliance.”
“We (promoters) always try to differentiate ourselves from that of management of board,” he said. “We expect rather positive impact on this proposed deal between Daiichi and Ranbaxy.”
Since Daiichi is much bigger than that of Ranbaxy, Orchid sees positive impact on its business. “We are even willing to work with Daiichi if the latter wants us to do so. We can even contract manufacture Daiichi’s products if the Japanese major feel so,” Rao maintained. During April-end, Ranbaxy had announced its strategic business alliance with Orchid Chemicals to work together on generic products and markets. This followed Solrex Pharmaceuticals, an investment arm of Ranbaxy, acquiring 14.7% of Orchid’s shares in the open market over a period of time.
