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Malvinder Singh quits as Ranbaxy chief

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Ranbaxy headquarters in Gurgaon. (Inset) Malvinder Singh, who stepped down as CEO and Managing Director at Ranbaxy.

Mr Malvinder Mohan Singh, Chairman, Chief Executive Officer and Managing Director of pharmaceutical major Ranbaxy Laboratories Limited, has stepped down from his positions with immediate effect, a statement from the company and Daiichi Sankyo Co of Japan said today.

Mr Atul Sobti, currently Chief Operating Officer of Ranbaxy, has been appointed as the new CEO and Managing Director, it said.

Dr Tsutomu Une, non-executive Director of Ranbaxy, has been elected as Chairman of the Board, the statement said, adding that the decisions were taken at the meeting of the company's Board of Directors today.

"We very much appreciate the efforts of the Singh family, which grew Ranbaxy from a small, local Indian company to the large multi-national company it has become today. We especially acknowledge the contributions of Mr. Singh. His strategic vision and passion for the pharmaceutical industry will be missed in Ranbaxy's operations. We wish him continued success as he pursues his many other business interests," Mr. Takashi Shoda, a director of Ranbaxy and the CEO of Daiichi Sankyo, which owns 63.92% of Ranbaxy's outstanding shares, said.

“I am pleased that Mr. Sobti has been appointed as CEO and Managing Director, providing continuity at the senior management level,” he added.

"It was a difficult decision to separate from Ranbaxy," said Mr. Singh, "but it was the right time for me to do so. I leave with complete confidence that the initial transition phase that followed Daiichi Sankyo's acquisition of majority shareholding interest in Ranbaxy has been completed successfully; and that the Company's excellent team of management colleagues are well-positioned to take full advantage of the Company's growth opportunities.”

Mr. Sobti has held the role of Chief Operating Officer at Ranbaxy since January 2007 and has been a senior executive at the Company from October 2005.

Dr. Une is currently a Non-Executive Director of Ranbaxy, a post he has held since December 2008, and is Senior Executive Officer and Member of the Board of Daiichi Sankyo.

Mr Malvinder Singh and his brother Shivinder Singh, grandsons of Ranbaxy founder Bhai Mohan Singh, had sold their entire 34.8 per cent stake in the pharmaceutical giant to Daiichi Sankyo in June last year for nearly Rs 10,000 crore.

Though Mr Malvinder Singh had no stake in Ranbaxy, it was decided that he would continue as CEO for the rest of his five-year term. He had defended his decision to sell by saying that it had become necessary for the company's advancement. The brothers were also apparently keen on pursuing their other business interests, which include Fortis.

A global pharma innovator, Daiichi Sankyo was established in 2005 through the merger of two leading Japanese pharmaceutical companies. A central focus of Daiichi Sankyo's research and development are thrombotic disorders, malignant neoplasm, diabetes mellitus, and autoimmune disorders. Equally important to the company are hypertension, hyperlipidemia or atherosclerosis and bacterial infections.

Ranbaxy, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines. It is now a subsidiary of Daiichi Sankyo.
Image: Ranbaxy headquarters in Gurgaon. (Inset) Malvinder Singh, who stepped down today as Ranbaxy's CEO and Managing Director
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