Ranbaxy no longer promoter firm of Fortis Healthcare

Ranbaxy (RLL) is to cease to be Fortis Healthcare’s promoting firm, the hospital chain has said.

The move follows Japanese drug company Daiichi Sankyo’s acquisition of a majority stake in RLL.

As a result, shareholding of the organisation in the business would be covered under the public shareholding category, Fortis Healthcare said in a filing to the Bombay Stock Exchange.

In the statement, the company said: “RLL has ceased to be a promoter group company of Fortis Healthcare with effect from November 7th”.

On the date in question, RLL had informed the bourse that Daiichi Sankyo had acquired the shareholding of Malvinder Mohan Singh and Shivinder Mohan Singh, which meant the family ceased to be promoters of the company.

Last month, Ranbaxy said it had “responded” to a US probe into alleged procedural violations at two of its Indian factories.

Its chief executive said the company expects an early resolution to the matter, which follows the US Food and Drug Administration saying in September it would block more than 30 of Ranbaxy’s generic drugs from entering the country, due to violations in manufacturing.

The organisation has manufacturing facilities in 11 countries and was formed in 1961.