Daiichi Sankyo officials to monitor new Ranbaxy unit

Daiichi Sankyo officials to monitor new Ranbaxy unit

January 17th, 2012 // 1:59 pm @

Daiichi Sankyo, the Japanese owner of Ranbaxy Laboratories, has deputed two executives to monitor the Indian drug maker’s new plant that will be the main source for supplying medicines for the US market.

A person aware of the development said these two executives, who are at the general manager and director level, would be based at the company’s new facility at Mohali, Punjab, which was approved by the US Food and Drug Administration (FDA) last month.

“The two companies interchange executives who come on deputation for certain period, whenever required,” said this person, adding that this does not reflect any lack of confidence in Ranbaxy’s current team. This was part of a normal “need-based” global human resources integration exercise, he said. A Ranbaxy spokesman said the company does not comment on HR-related matters.

Last month, the country’s largest drug maker signed a consent decree with the FDA to end its three-year-old legal and regulatory dispute with the American authorities. It has also kept aside $500 million to close a legal probe as part of the settlement.

In 2008, the FDA banned 30 drugs made at Ranbaxy’s plants in Dewas and Poanta Sahib and stopped approving new ones for violating US drug manufacturing rules. The consent decree requires Ranbaxy to take a series of stringent measures in these two plants to adhere to US laws, and it can take years before the company can start supplying drugs to the US from them.

Mumbai-based Sun Pharma signed a consent decree for its Detroit facility with the FDA in 2009 but is yet to get approval to begin manufacturing from there.

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