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Daiichi Sankyo Head Sees Strong Upside To Ranbaxy Buy

This article was originally published in PharmAsia News

Executive Summary

Daiichi Sankyo shrugs off the cost of buying India's Ranbaxy Laboratories and says it is confident the merger of the two companies will establish a working synergy. The Japanese firm had to write off a big loss of 2008 profits, but President Takashi Shoda says he expects the purchase eventually to negate the loss. Takashi Shoda said the Ranbaxy purchase was akin to sowing a seed that would grow into a 2015 operating profit margin of 25 percent. But whether Daiichi Sankyo reaches that goal depends on its ability to keep its focus on its traditional development of new drugs rather than the generics produced by Ranbaxy. (Click here for more - a subscription may be required

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