Daiichi Sankyo Co Ltd believes that certain former shareholders of Ranbaxy Laboratories Ltd concealed and misrepresented certain critical information concerning US Food and Drug Administration and Department of Justice investigations at the time of Daiichi Sankyo's purchase of shares of Ranbaxy in 2008 and was pursuing its available legal remedies.
Daiichi Sankyo announced today that it received on May 3, 2016 a final award dated April 29, 2016 in the arbitration in Singapore that Daiichi Sankyo filed with the International Court of Arbitration of the International Chamber of Commerce in November 2012 against the Former Shareholders.
The award orders the Former Shareholders to pay Daiichi Sankyo the following amount.
1) INR 25,627,847,918.31 as compensatory damages and INR 8,510,692,333.80 as interest
2) US $14,549,684.60 for attorneys' fees and expenses and $US 599,250.00 for arbitration costs which were incurred by Daiichi Sankyo
The total amount of award is approximately 56.2 billion Japanese yen (conversion rate; 1 rupee = 1.6 yen, 1 dollar = 107 yen).
In April 2014, Daiichi Sankyo agreed that Sun Pharma would acquire Ranbaxy. The acquisition was completed in March 2015. Daiichi Sankyo sold out entire Sun Pharma shares obtained through the acquisition in April 2015.
