Posted by: Bruce Einhorn on September 18, 2008
We’ve been covering the ongoing problems that Indian drugmaker Ranbaxy has been having with the FDA in the U.S. Now, just days after the FDA announced a ban on the import of over two dozen of its drugs, Ranbaxy has unveiled its latest tactic: The company is betting Rudy Giuliani can help solve its problems. Ranbaxy announced today that it has hired Giuliani Partners “to provide advice and review compliance issues related to the recent United States Food and Drug Administration letters and Import Advisory.”
This seems like a pretty risky move. Yes, should McCain win the election, having Rudy on board could very well help Ranbaxy deal with the regulators. But what does Ranbaxy do if Obama wins? Or maybe the company is planning on the whole thing getting resolved before the new president – McCain or Obama – takes office in Jan. 20.
In related Ranbaxy news, my colleague Mehul Srivastava in Delhi notes that we should be keeping an eye on the stock price tomorrow. As Mehul points out, the trading volume on Ranbaxy stock was surprisingly thin yesterday after the FDA announcement, especially when compared to the 10% drop earlier this summer following news that the FDA was investigating the company. Turns out a lot of the shares are caught up in the open offer to Daiichi Sankyu, the Japanese drugmaker that is in the process of taking over Ranbaxy, and are thus not available for trading. “But on the 19th-20th, Daiichi will refund/credit the shares that it did not buy (the offer was oversubsribed),” Mehul writes, “and unless there’s good news, folks likely will sell them.”