Sun Pharma shows the door to 18 senior Ranbaxy Labs executives
18 Jun 2015
Sun Pharma, India's largest drugmaker, has reportedly asked 18 senior executives who earlier worked with Ranbaxy Labs, to leave the company, The Economic Times today reported, citing people close to the development.
The move comes a year after Dilip Shanghvi-led Sun Pharma acquired Ranbaxy in a $3.2-billion all-stock deal (See: Sun Pharma, Ranbaxy to merge in Rs24,000 all-stock deal).
Prominent among those who have been asked to leave are Indrajit Banerjee, president and CFO; Yugal Sikri, country head (India) Ranbaxy; Maninder Singh, VP marketing; Govind Jaju, global head, sourcing; Ratul Bahaduri, director-finance, among others, the report said.
Most of these executives were hired after Daiichi acquired Ranbaxy in 2008.
These executives have been given a severance package and the choice to exercise their stock options before leaving, the report added.
Nearly 150 senior management staff including those who are VP and above will be asked to leave over the coming months, the report also added.
The merger between pharma heavyweights Sun Pharma and Ranbaxy had created a stir in the pharmaceutical world. Turning around Ranbaxy, which has been in losses for several quarters prior to the takeover will, however, be an arduous task for Sun.
Ranbaxy had in 2013 admitted that it had falsified data while seeking approval of the United States Food & Drug Administration (FDA), for its generic medicines, and paid a penalty of $500 million to settle the dispute (Ranbaxy fined $500 mn by US regulator over drug safety lapses).