Did Ranbaxy hit a jack pot by selling it off?
Japanese drug maker Daiichi
Sankyo will take a hit on its books owing to its acquisition of Indian
pharmaceutical major Ranbaxy Laboratories.
On a consolidated basis, Daiichi estimates a non-cash loss of 354 billion yen
related to the write-down of goodwill associated with its investment in the
indian company in line with the valuation loss on Ranbaxy shares accounted for
on a non-consolidated basis.
However, the company clarified that this would not have an impact on its
forecasts for net sales, operating income or its cash flow for the third
quarter fiscal.
The company also said the step was taken to meet the strictest accounting
standards to ensure it remains on a firm financial footing and considers its
investment in Ranbaxy as essential in ensuring business growth.
Last month, the board of the Indian pharma major was reconstituted following
the strategic alliance with Daiichi Sankyo, with the former Ranbaxy chief
executive and managing director Malvinder Mohan Singh being nominated as the
new entity's chairman.
Daiichi Sankyo holds 63.92 percent of the Indian company's equity share
capital.
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