The US FDA has taken Ranbaxy to court for systematic fraudulent conduct. The US FDA believed that violations have resulted in adulterated and misbranded drugs. The US FDA has claimed that Ranbaxy has used APIs (active pharmaceutical ingredient) from unapproved sources. It has raised issues on potency and adulteration of medicines. The US FDA has asked court to force Ranbaxy for internal review of manufacturing operations in India. It has been investigating Ranbaxy for the past three years. The Paonta Sahib plant has been suspended for US supplies since 2006.

Malvinder Singh said that there has been speculation due to lack of understanding and clarity on the issue. The Ranbaxy stock price is not reflective about the true potential of the company, he said. The Daiichi Sankyo-Ranbaxy deal is on track without any change, Singh said. Daiichi Sankyo was aware of USFDA issue before the deal, he said. Big pharma MNCs and some brokers are trying to put pressure on the Ranbaxy share, he alleged.

Excerpts from Malvinder Singh's Speech at the Press Conference:

"There has been a lot of speculation that has been arising because of the lack of understanding of what the situation is and also a complete lack of clarity for many people out there who are trying to speculate and assume a lot of things. At the same point in time, I understand that there are rumors in the market where a big pharmaceutical company and an MNC, a leading Indian company and certain stock brokers out there are trying to create uncertainty, are trying to bring the price down and are trying to take advantage of the situation that is currently there. This obviously is creating a fair amount of anxiety for our shareholders that has got the price down which is not reflective of the true performance of the company or the potential that we have. So they are a bunch of people out there in the market who are trying to create uncertainty for us as an organization.

I would like to identify a couple of key points regarding the transaction that we have done with Daiichi Sankyo and also try and address certain matters linked to the DoJ (Department of Justice) and the STA matter -

Firstly the Daiichi Sankyo and Ranbaxy is absolutely on track and there are no changes and there have been lot of questions and comments that have been made over the last few days questioning whether the terms are going to change, that the deal is on track or is it not going to happen. These comments are completely speculative and baseless. The deal of Daiichi Sankyo and Ranbaxy stands, it is a binding deal, and we had an EGM yesterday where the share holders unanimously approved the infusion of additional equity and warrants to the extent of USD 1.2 billion, coming into the company from Daiichi Sankyo. So everything regarding the deal is very much on track and we are continuing to seek the required approvals and to take the deal forward. There is no change in it and there will be no change further too. Daiichi Sankyo as a part of their due diligence has conducted and gone through a bunch of things and they were completely aware of the issue that has opened with the US FDA and we are confident that we will resolve this and would come out of it. So there is absolutely no question or any uncertainty on this deal as we move forward. This will happen at Rs 737 where the promoter family shares will go to them and will be an open offer of up to 20% and money from them on a preferential basis on equity and in terms of warrants will come to Ranbaxy during the course of a few weeks. So all of that is on track and there is nothing to be concerned about.

In terms of the matter with FDA and the DoJ, this is nothing new, this has been an on-going dialogue with them for between 2-3 years and they have been seeking information from us and we have consistently provided information to them as and when asked. This is a motion to seek information and there is nothing beyond that. There are a lot of concerns and a lot of misquoting and misrepresentation by the media on this in terms of speculating and trying to create a scenario which will cause anxiety and uncertainty to people where there is absolutely no need for that. They have an extensive documentation that we have provided them over the last 2-3 years, they have gone through that and they have not raised any issue on that. Our business in America carries on as it was and there is absolutely no change. Our business in America is doing well and it is growing and it will continue to carry on the way the business has been in the past. We are getting approvals from multiple plants and we will be launching products in America and that too there is no concern or issue to cause anxiety to any body on that. Any information that they need will be sent to them in the next few days and our technical consultants Parexel will be providing that they have also been requested for, over the course of the next 2-3 weeks. So our intention is that within the next month all the information required would be given to them and it is our understanding with them that this motion will be re-called once that information is sent to them. So there is nothing beyond just additional information seeking that this motion actually calls for, the allegations there are not right, we have done very extensive investigations ourselves and we have used a third party consultant Parexel to do that. We have done audit and all those audits are clean.

The FDA has also extensively on a randomized basis, they had picked up over 200 samples from us, they have evaluated that for everything and they have absolutely cleared all of that without any issue. As a company we remain extremely committed in providing the highest quality drugs at affordable prices around the world. We are a global reputed organization and we will continue to ensure that we service the needs of our customers on a global basis. As an organization, we are here to do the right thing, we continue to believe in providing lower cost effective generic products around the world and at the same time doing it in a manner where we create a substantial value for our share and all our stakeholders at large.