Home Economy Ranbaxy, Daiichi Sankyo will dominate Japanese market: Malvinder

Ranbaxy, Daiichi Sankyo will dominate Japanese market: Malvinder

By IANS,

London : Ranbaxy CEO Malvinder Mohan Singh said Thursday his company, together with the merged Daiichi Sankyo of Japan, will dominate the Japanese generics medicine market in the “next few years”.

“This combination provides Ranbaxy with a very substantial edge and advantage as the Japanese generic market opens up, which is the second largest pharmaceutical market in the world,” Singh told a meeting organised in London by the Confederation of Indian Industry (CII).

“We jointly believe that we will in the next few years have a leadership position in that market,” Singh added.

Speaking on a day when Ranbaxy stocks dropped after a patent settlement with the US drugs giant Pfizer, Singh also said he expected the major global multinational companies to follow the trend set by Ranbaxy and Daiichi Sankyo.

“This coming together of Daiichi Sankyo and Ranbaxy is for the first time in the pharmaceutical industry globally the coming together of an independent innovation company and a generic company,” Singh said.

“We jointly believe this will pave the way for creating a new business model over the next many, many years in the pharmaceutical environment globally, which will then enable companies like us to have a complete bevy of products from innovation to branded generics… to be able to supply those right across the emerging, developing and underdeveloped markets around the world,” he added.

“That will really be a new paradigm, which we believe many other leading big pharmaceutical companies around the world would want to follow as a model,” Singh told an audience of British and Indian business heavy weights.

Singh said the merger allows Ranbaxy to “significantly transform itself” from being a generic player to becoming a “much stronger player with innovation, research and development and a far larger pipeline to leverage globally”.

Jointly, the two companies have catapulted to the 15th largest pharmaceutical company in the world, whereas independently Ranbaxy stood at 50th and Daiichi Sankyo at 27th.

Market capitalisation has jumped from Ranbaxy’s $5 billion to a joint $30 billion, Singh said, adding: “This is a very transformational and significantly strategic deal for us as an organisation.”