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Ranbaxy Laboratories
Dachie and Ranbaxy Deal Up
Posted by :
imti_lakTracked by: 5 Boarders
One thing which is very puzzling is the premium for the 400 sept call and 380 sept call (more than 100 for both). If it is almost sure that in sept the price of ranabxy is going to be around 400 why is people buying so expensive calls....
In reply to:
Dachie and Ranbaxy Deal Up
Posted by :
marketbear
there is no reason for fall. There may be a game going on of operators. Ranbaxy may shoot up after all the shareholders tender the shares leaving shortage of floating stock which can help operators easily rig the price up. They may be cornering the chunk of the stock or future through this dull trading. 
Dachie and Ranbaxy Deal Up
Posted by : marketbearTracked by: 5 Boarders
there is no reason for fall. There may be a game going on of operators. Ranbaxy may shoot up after all the shareholders tender the shares leaving shortage of floating stock which can help operators easily rig the price up. They may be cornering the chunk of the stock or future through this dull trading....
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : imti_lak
Thanks for the explanation. That means it will fall around 380 after the open offer ends. But why is slowly falling now? As open offer starts on 16 should not the price of Ranbaxy get up a bit?
Dachie and Ranbaxy Deal Up
Posted by : imti_lakTracked by: 5 Boarders
From the above message I understood that ranbaxy may go upto 550 levels during the open offer. But what happens on 4th or 5th sept. Will the exchange itself will reset the ranabxy price around 400 on that day? Will all the ranbaxy stocks will be in no trading zone till the stocks are back?...
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : hardybull
As soon as the shares can be tendered in, a large chunk will be deposited leaving very little floating stock. Ranbaxy has to transact tru the system at the 737 levels . . . which means that there has to be a limited window access at that point at higher levels to offload some stock. All calculations of the 425 levels post buyback are workings on average accepted and those returned etc . . . keep in mind stock tendered in is not in the trade zone till at least mid September.
Methinks one upmove past the 575 levels leaving option to tender in shares so garnered . . . with the writing on the wall at the 425 levels. There are hints of Daichi tryin to buy maybe a larger chunk by extending offer . . .still rumour stage only though!!
Long holders may not even be looking at this entire process as they figure still comes up @ 700+ levels in appx 18 months. The opinion is that the Japs maybe slow movers but they are in it for the long haul and know precisely what they are doing!! :D
Dachie and Ranbaxy Deal Up
Posted by : hardybullTracked by: 5 Boarders
As soon as the shares can be tendered in, a large chunk will be deposited leaving very little floating stock. Ranbaxy has to transact tru the system at the 737 levels . . . which means that there has to be a limited window access at that point at higher levels to offload some stock. All calculations of the 425 levels post buyback are workings on average accepted and those returned etc . . . keep in mind stock tendered in is not in the trade zone till at least mid September.
Methinks one upmove past the 575 levels leaving option to tender in shares so garnered . . . with the writing on the wall at the 425 levels. There are hints of Daichi tryin to buy maybe a larger chunk by extending offer . . .still rumour stage only though!!
Long holders may not even be looking at this entire process as they figure still comes up @ 700+ levels in appx 18 months. The opinion is that the Japs maybe slow movers but they are in it for the long haul and know precisely what they are doing!! :D ...
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : imti_lak
Thanks for the explanation. That means it will fall around 380 after the open offer ends. But why is slowly falling now? As open offer starts on 16 should not the price of Ranbaxy get up a bit?
Dachie and Ranbaxy Deal Up
Posted by : imti_lakTracked by: 5 Boarders
Thanks for the explanation. That means it will fall around 380 after the open offer ends. But why is slowly falling now? As open offer starts on 16 should not the price of Ranbaxy get up a bit?...
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : marketbear
imti tak,
This is not a buy back but just transfer of ownership of the company. Ranbaxy share has gone up because of buying of stake by Daiichi at 737 from Malvinder Sing (chairman of Ranbaxy). Hence there is open offer for purchase of another 20% stake at 737. Shareholders will tender their shares in the open offer. Since there are 60% (approx) held by investors including institutions, only 33% shares will accepted. Thus what will happen to remaining 67% shares. They will not get the present value. Current price of Ranbaxy is discounting the benefit of open offer. After closing of the offer and return of 67% of shares of ranbax, ranbaxy will not get the current price and it will fall to the price at which september future is quoting and this is well known and very much sure. There is no question on it.
regards
Allegations of Conspiracy and Fraud
Posted by : GuestTracked by: 0 Boarder
Despite the fact that generic drug maker Ranbaxy Laboratories, Ltd. is in the midst of a scandal and a US investigation, the Food and Drug Administration (FDA) went ahead and approved 18 of its drugs. Ranbaxy is accused of conspiracy, falsifying statements, and healthcare fraud. On its Website, the House Energy and Commerce Committee states that the FDA has been aware of these allegations for no less than 18 months. “Allegations from reliable sources and supporting documents indicate a pattern of systemic fraudulent conduct, including submissions by Ranbaxy to the FDA that contain false and fabricated information,” the Justice Department wrote.
Late last month we reported that lawmakers probing allegations that Ranbaxy imported defective drugs into the US sent a letter to FDA Commissioner Andrew von Eschenbach, demanding information on each drug Ranbaxy has approval to market here. Representatives John Dingell and Bart Stupak, both Michigan Democrats who head up the House Committee on Energy and Commerce, wrote that they were concerned that the FDA knew about problems with Ranbaxy drugs for months, but did nothing.
In early July, US prosecutors filed a motion in federal court in Maryland alleging that Ranbaxy forged documents relating to an investigation into the quality of the company’s drugs sold in the this country. The investigation is also looking into allegations that Ranbaxy made weak or adulterated HIV drugs that were given to thousands of AIDS patients in Africa. Prosecutors have also accused Ranbaxy of concealing violations of good manufacturing practice regulations from the FDA.
Ranbaxy, India’s largest drug maker, has already brought to market nine of the 18 drugs, including copies of Bristol-Myers Squibb Company’s cholesterol drug Pravachol and Johnson & Johnson’s nonprescription allergy pill Zyrtec. But lawmakers and former FDA officials are wondering why the FDA continued to trust Ranbaxy’s data on new products despite the scandal. Also, the Energy and Commerce Committee—which oversees the FDA—is looking into why the FDA didn’t act on the information, which was described by the Justice Department in the court motion last month. According to Mary Pendergast, a former FDA deputy commissioner, the FDA should have stopped Ranbaxy’s drug applications approvals because the FDA “wouldn’t be confident of the accuracy and reliability of the information in the applications…. They might be approving a product that ought not be approved.”
According to the July 3 motion, Ranbaxy’s drugs may contain too much or too little of their main ingredients, the Justice Department wrote. The government is now reviewing data regarding falsification of documents that stated Ranbaxy’s generic drugs are absorbed at the same rate and extent as the brand names. Such information is used by the FDA to determine if generics should be approved for sale, which eliminates the need to require the full clinical trials needed for clearance of new brand-name drugs. The “FDA doesn’t need to wait for a conviction to freeze review of somebody’s application,\\`’ said Areta L. Kupchyk, who helped decide whether to halt approvals when she worked as an FDA lawyer. ”So long as there are significant suspicions that the data is questionable, FDA can freeze the review,\\`’ Kupchyk added.
Many are wondering why this did not occur.
...
Dachie and Ranbaxy Deal Up
Posted by : marketbearTracked by: 5 Boarders
imti tak,
This is not a buy back but just transfer of ownership of the company. Ranbaxy share has gone up because of buying of stake by Daiichi at 737 from Malvinder Sing (chairman of Ranbaxy). Hence there is open offer for purchase of another 20% stake at 737. Shareholders will tender their shares in the open offer. Since there are 60% (approx) held by investors including institutions, only 33% shares will accepted. Thus what will happen to remaining 67% shares. They will not get the present value. Current price of Ranbaxy is discounting the benefit of open offer. After closing of the offer and return of 67% of shares of ranbax, ranbaxy will not get the current price and it will fall to the price at which september future is quoting and this is well known and very much sure. There is no question on it.
regards...
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : imti_lak
Hi marketbear,
Will you explain me one thing why the stock price of ranbaxy should fall by 100 rs because of the open offer. This is a kind of buy back and not any right issue or bonus so why the stock price should fall?
Ranbaxy Drugs Win Approval Amid Probe Whe
Posted by : GuestTracked by: 0 Boarder
Ranbaxy Drugs Win Approval Amid Probe Whether Data Were False
By Justin Blum
Aug. 13 (Bloomberg) -- The Food and Drug Administration approved 18 generic drugs made by Ranbaxy Laboratories Ltd. even as the U.S. investigated whether the company fabricated data to get its medicines cleared.
The FDA has been aware of the allegations for at least 18 months, the House Energy and Commerce Committee said in a document on its Web site. Ranbaxy, India\\`s largest drugmaker, has brought to market nine of the 18 drugs, among them copies of Bristol-Myers Squibb Co.\\`s cholesterol drug Pravachol and Johnson & Johnson\\`s nonprescription allergy pill Zyrtec, according to the company.
Lawmakers and former FDA officials are now questioning why the agency continued to trust Ranbaxy\\`s data on new products after learning of the allegations. The Energy and Commerce Committee, which oversees the FDA, is probing why the agency didn\\`t act on the information, described by the Justice Department in the court motion last month seeking documents from the company.
The FDA should have halted approval of Ranbaxy\\`s drug applications because the agency ``wouldn\\`t be confident of the accuracy and reliability of the information in the applications,\\`\\` said Mary Pendergast, a former FDA deputy commissioner who is now a consultant for drug and medical-device companies. ``They might be approving a product that ought not be approved.\\`\\`
Pendergast based her comments on the allegations in the court motion, not independent knowledge of the case, she said in a telephone interview this week. She said clients of her firm, Pendergast Consulting in Washington, have included J&J and Genentech Inc.
Audits Sought
On July 3, the government asked a U.S. District Court judge in Maryland to force the company to turn over audits completed by a contractor, which Ranbaxy later agreed to provide. According to the motion, the government is investigating allegations including conspiracy, false statements and health- care fraud.
``Allegations from reliable sources and supporting documents indicate a pattern of systemic fraudulent conduct, including submissions by Ranbaxy to the FDA that contain false and fabricated information,\\`\\` the Justice Department wrote.
Ranbaxy ``strongly denies\\`\\` the claims in the motion, the Gurgaon, India-based drugmaker said in a July 14 statement. The FDA collected more than 200 samples of products sold by the company, and all were found to meet required specifications, the drugmaker said.
``The allegations are baseless,\\`\\` Ranbaxy said. ``The company\\`s business in the U.S. continues as normal.\\`\\`
Drugs Approved
The FDA approved 18 Ranbaxy drugs since a government search of the company\\`s New Jersey facilities on Feb. 14, 2007, said Ranbaxy spokesman Charles M. Caprariello, in a telephone interview this month. The company decided not to sell three of the products, and six aren\\`t being sold yet because of patents held by brand-name drugmakers, he said.
Daiichi Sankyo Co. won approval from India\\`s government this month to buy Ranbaxy for as much as .7 billion. Tokyo- based Daiichi Sankyo said this week that it will begin its tender offer for Ranbaxy on Aug. 16.
Ranbaxy fell 11 percent, the biggest drop in seven years, in Mumbai trading after the U.S. court motion was disclosed last month. The shares later rebounded after Ranbaxy gave assurances that the investigation wouldn\\`t derail the sale. Ranbaxy fell 1.8 percent to 500.5 rupees yesterday and has gained 18 percent this year through yesterday.
Ingredients Questioned
The nature of the government inquiry was first disclosed in the Justice Department\\`s July 3 motion.
The company\\`s drugs may have too much or too little of their main ingredients, the Justice Department wrote. The government said it is probing whether data showing Ranbaxy\\`s generic drugs are absorbed at the same rate and extent as the originals were falsified. That information is used by the FDA to determine whether drug copies should be approved for sale, instead of requiring the full clinical trials needed for clearance of novel brand-name treatments.
The ``FDA doesn\\`t need to wait for a conviction to freeze review of somebody\\`s application,\\`\\` said Areta L. Kupchyk, who helped decide whether to halt approvals when she worked as an FDA lawyer. She now represents drug and medical-device makers as a lawyer at the firm Reed Smith LLP in Washington. She declined to identify her clients.
``So long as there are significant suspicions that the data is questionable, FDA can freeze the review,\\`\\` Kupchyk said in a telephone interview last week.
65 Medicines
Ranbaxy markets 65 medicines in the U.S., and its sales in the country were 6 million last year, according to Caprariello. U.S. patients filled 52 million prescriptions with Ranbaxy\\`s generic drugs in 2007, according to IMS Health Inc., a Norwalk, Connecticut market research firm.
The company has the right to distribute the first copies of New York-based Pfizer Inc.\\`s cholesterol pill Lipitor, the world\\`s best-selling drug with .7 billion in 2007 sales, in November 2011, after the patent expires.
The FDA suspended action on Ranbaxy\\`s applications for drugs made at one of the company\\`s plants in Paonta Sahib, India, after the agency found what it called ``significant deviations\\`\\` from required manufacturing practices at the facility in 2006.
In the July motion, the Justice Department said the government has reason to believe Ranbaxy\\`s actions ``have resulted and continue to result\\`\\` in the sale of ``adulterated\\`\\` products.
FDA Won\\`t Comment
Because the investigation is continuing, the FDA won\\`t comment on why it hasn\\`t blocked approval of Ranbaxy products, said spokeswoman Julie Zawisza, in an interview last month. Adulteration doesn\\`t ``necessarily mean there is or isn\\`t a safety issue,\\`\\` Zawisza wrote in an e-mail.
The FDA has previously frozen drug applications from at least 17 companies, according to a list on the agency\\`s Web site. Solvay Pharmaceuticals Inc., a unit of Brussels-based Solvay SA, had its applications halted from 1997 to 2003. The list is incomplete, said FDA spokeswoman Heidi Rebello in an e- mail.
Regulators should apply a freeze to Ranbaxy, said Representative Bart Stupak, the Michigan Democrat who is chairman of the Energy and Commerce panel\\`s investigative subcommittee, in an e-mailed response to questions last week.
``It is obvious to everyone except the leadership at the FDA how absurd it is to approve new Ranbaxy drugs before getting to the bottom of this criminal investigation,\\`\\` Stupak said.
The case is U.S. v. Ranbaxy Inc., 08cv1764, U.S. District Court for the District of Maryland (Greenbelt).
To contact the reporter on this story: Justin Blum in Washington at jblum4@bloomberg.net.
Last Updated: August 13, 2008 00:00 EDT ...
Dachie and Ranbaxy Deal Up
Posted by : imti_lakTracked by: 5 Boarders
Hi marketbear,
Will you explain me one thing why the stock price of ranbaxy should fall by 100 rs because of the open offer. This is a kind of buy back and not any right issue or bonus so why the stock price should fall?...
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : marketbear
dear naresh, You have got two options either tender shares to Daiichi in the open offer at 737 which will be open from August 16 to september 4 or sell in the market price. There is no point point in holding the stock at current price as stock will tumble at least by 100 rupees in september after open offer completes. You can buy back those shares in september at much lower price which is sure and there is no confusion about it.
Dachie and Ranbaxy Deal Up
Posted by : marketbearTracked by: 5 Boarders
dear naresh, You have got two options either tender shares to Daiichi in the open offer at 737 which will be open from August 16 to september 4 or sell in the market price. There is no point point in holding the stock at current price as stock will tumble at least by 100 rupees in september after open offer completes. You can buy back those shares in september at much lower price which is sure and there is no confusion about it....
In reply to:
Dachie and Ranbaxy Deal Up
Posted by : Naresh902
Hi
I have taken 60 shares of ranbaxy at 526, will this stock moveup or should i hold it long time to get proper returns.
Please advice me.
Thanks
Naresh
Dachie and Ranbaxy Deal Up
Posted by : Naresh902Tracked by: 5 Boarders
Hi
I have taken 60 shares of ranbaxy at 526, will this stock moveup or should i hold it long time to get proper returns.
Please advice me.
Thanks
Naresh...
Arbitrage oppurtunities in Derivatives
Posted by :
round rockTracked by: 3 Boarders
hi indianbffet,
In that case does it not make sense to wait and sell the 400 sep call at 150 or 200 o whatever the rigged price will be instead o doing now at 109 ? also why not BUY sep 540 calls at 5 rs as insurance ?...
In reply to:
Arbitrage oppurtunities in Derivatives
Posted by : Indianbuffet
after step d. i booked 150 rs loss, i will again sell the option at Rs250.
again i covered my 150rs loss and gained back rs 100.
so effectively i paid only the brokerage.
so after this, even if the steps a. to d. keep on repeating till 5th sept. i have no problem except paying brokerage on trades to regain my position.
at step e. option falls to be in sync with sept. spot price, so will the future come in line with spot price.
i am good.
isnt it ?
Arbitrage oppurtunities in Derivatives
Posted by : sanjeev.ynrTracked by: 3 Boarders
buffet sir pls clarify something:
i sell a ranbaxy september 400 call @ 116 and next day the buyer uses his exercise when cash rate is 516 and call rate is 118.
but i dont have ranbaxy shares in my demat.
than how wud be settlement made ? i mean from where will that buyer be fetched 800 shares ? will this be from the open market next day ?
if that is the case than if next day ranbaxy opens at 522 than i will lose Rs 6 per share ?...
In reply to:
Arbitrage oppurtunities in Derivatives
Posted by : Indianbuffet
after step d. i booked 150 rs loss, i will again sell the option at Rs250.
again i covered my 150rs loss and gained back rs 100.
so effectively i paid only the brokerage.
so after this, even if the steps a. to d. keep on repeating till 5th sept. i have no problem except paying brokerage on trades to regain my position.
at step e. option falls to be in sync with sept. spot price, so will the future come in line with spot price.
i am good.
isnt it ?
Open Offer
Posted by : GuestTracked by: 0 Boarder
I have 200 shares of Ranbaxy. Iam not sure of the open offer. I called the registrars and no one is replying properly. Can anyone help on this....
ANOTHER OPEN OFFER .... YES IT IS TRUE
Posted by :
rtoshniwal1Tracked by: 0 Boarder
AS per latest announcement of ICICI on behalf of DAICHI, another open offer @ 737/- will come if daichi choses to exercise its warrants .... which it is most likely to do as it has paid serious money for the same.
so do not fritter away your residual shares thru sept shorts
comments invited ...
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