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For Immediate Release
Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, Representative Director, President and CEO
(Code no.: 4568, First Section, Tokyo Stock Exchange)
Please address inquiries to Noriaki Ishida, Executive Officer,
Vice President, Corporate Communications Department
The outcome of arbitration proceeding with certain former shareholders of Ranbaxy
TOKYO, Japan (May 6, 2016) – As previously disclosed, Daiichi Sankyo Co., Ltd. (head office: Chuo-ku, Tokyo; hereinafter “Daiichi Sankyo”) believes that certain former shareholders (hereinafter the “Former Shareholders”) of Ranbaxy Laboratories Ltd. (hereinafter “Ranbaxy”) concealed and misrepresented certain critical information concerning US Food and Drug Administration and Department of Justice investigations at the time of Daiichi Sankyo’s purchase of shares of Ranbaxy in 2008 and was pursuing its available legal remedies. Daiichi Sankyo announced today that it received on May 3, 2016 a final award dated April 29, 2016 in the arbitration in Singapore that Daiichi Sankyo filed with the International Court of Arbitration of the International Chamber of Commerce in November 2012 against the Former Shareholders.
The award orders the Former Shareholders to pay Daiichi Sankyo the following amount.
1) 25,627,847,918.31 Indian rupees as compensatory damages and 8,510,692,333.80 Indian rupees as interest
2) 14,549,684.60 US dollars for attorneys’ fees and expenses and 599,250.00 US dollars for arbitration costs which were incurred by Daiichi Sankyo
The total amount of award is approximately 56.2 billion Japanese yen (conversion rate; 1 rupee = 1.6 yen, 1 dollar = 107 yen).
Daiichi Sankyo will announce the financial impact of the award when the timing of collection of the aforesaid amount is confirmed.
In April 2014, Daiichi Sankyo agreed with Sun Pharma Industries Ltd. (head office: Mumbai, Maharashtra, India; hereinafter “Sun Pharma”) that Sun Pharma would acquire Ranbaxy. The acquisition was completed in March 2015. Daiichi Sankyo sold out entire Sun Pharma shares obtained through the acquisition in April 2015.