Eight years after selling its stake in Ranbaxy Laboratories, the family that controlled the generic drug maker has been ordered to pay approximately $400 million in damages to Daiichi Sankyo for concealing information about extensive quality control problems.
An arbitration panel on Thursday determined that Malvinder Mohan Singh and Shivinder Mohan Singh hid and concealed facts about operations at Ranbaxy when they sold their shares to Daiichi for $2.4 billion.
At the time, Ranbaxy was one of the largest providers of generic drugs to India and many other countries, including the United States. And Daiichi viewed the deal as an easy stepping stone to becoming an even bigger purveyor of pharmaceuticals on a worldwide basis.
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