Daiichi to shut down Indian R&D centre; 170 employees impacted

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26 Aug, 2025 12:21

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Moneycontrol BureauJapanese drug maker Daiichi Sankyo on Wednesday said it has decided to pull down the shutters of its Indian R&D centre in Gurgaon, as part of its global restructuring programme to boost its productivity.“Daiichi Sankyo is reviewing its global R&D system with the aim of decreasing R&D operations costs and redistributing resources to the further development of its R&D pipeline,” the company said in a statement. Daiichi presently employs approximately 170 people, mainly engaged in conducting drug discovery research targeting infectious diseases and inflammation. Following its closure, Daiichi’s R&D pipeline, including research themes selected by the Global Health Innovative Technology Fund will be transferred to Daiichi Sankyo’s R&D division in Japan, the company said.Daiichi’s didn’t disclose the fate of the 170 employees.The shutdown in India follows Daiichi’s closure of UK and Germany R&D sites as the company plans to consolidate its R&D activity to drive down costs.Daiichi took over Ranbaxy’s R&D division and retained most of its 200 odd scientists as part of its USD 4 billion acquisition of India generic drug maker Ranbaxy in 2008. The closure of Gurgaon centre marks the end of Daiichi’s direct presence in Indian through the botched-up acquisition of Ranbaxy. Daiichi sold Ranbaxy to Sun Pharma in April 2014 after the US banned four key plants and imposed USD 500 million penalty for falsifying data at its drug facilities and following shoddy manufacturing practices.Daiichi said it has won an arbitration in Singapore against Ranbaxy’s erstwhile promoters Malvinder Mohan Singh and Shivinder Mohan Singh, that entitles it to Rs 3,500 crore in damages for concealing facts related to Ranbaxy prior to the acquisition.Singh brothers are contesting the case.