By IANS,
Chennai : The Chennai-based Orchid Chemicals and Pharmaceuticals Limited sees the acquisition of majority stake by Daiichi Sankyo of Japan in Ranbaxy Laboratories, India’s largest pharmaceuticals company, as a positive development, according to a top company official Wednesday.
“The acquisition of Ranbaxy by Daiichi will not adversely affect us in India or constrict our entry into Japan,” K. Raghavendra Rao, Orchid Chemicals managing director, told IANS here.
According to him, the new development may turn out to be better for Orchid Chemicals as far as its Japanese plans are concerned.
Solrex, a Ranbaxy group company, had acquired a tad below 15 percent stake in the Rs.12.39 billion-turnover Orchid Chemicals earlier this year.
Subsequently the two companies entered into a strategic business alliance agreement in April.
About the products to be made as per the business alliance with Ranbaxy, Rao said: “We are in the cephalosporin field. Logically, we will be making antibiotics as per the business alliance.”
Dr. C.B. Rao, deputy managing director, added: “The Daiichi entry is a better development for Orchid Chemicals as we are quality manufacturers of active pharmaceutical ingredients (API).”
Queried about the acquisition of 7.22 per cent stake by the Pune-based Poonawala group company, he said: “Ownership and management are different. I don’t expect any pressure on the company because of this development.”
Meanwhile, Orchid Chemicals’ scrip opened at Rs.231 (face value Rs.10) Wednesday at the National Stock Exchange (NSE) and after going up to Rs.263.95 closed at Rs.260.05.
The scrip had closed at Rs.229.70 Tuesday.