Ranbaxy to Continue with Generic Business Strategy

Leading Indian newspaper Times of India (TOI) run an interesting piece of news about Ranbaxy business strategy to retain generic focus after being acquired by the Japanese Daiichi Sankyo. As rightly pointed by TOI most in industry believed that Ranbaxy will likely dilute its aggressive generic strategy, particularly paragraph IV challenges after being part of pharmaceutical drug innovator Daiichi but in an interview given to TOI, Daiichi Sankyo president and CEO Takashi Shoda told that “the company will follow a unique business model, focusing not only on innovation but also on generics”. He further added that “in developed markets like US and Japan, Ranbaxy will expand its generic business”. Further elaborating on the strategy, Ranbaxy MD Malvinder Singh said, “Our business model will continue in the US, and so will out strategy in generics. We will continue to file and evaluate First-to-file patent opportunities. We will together create a new model, where we will maintain and leverage each other strengths to benefit both (companies)”.

Considering that Daiichi has or had been in business collaborations with many innovators including Roche, Novartis, Eli Lilly and Forest Laboratories, it would be really interesting to watch how Daiichi take Ranbaxy’s business model forward in the US, in particular paragraph IV opportunities.