Ranbaxy Comments on Merck KGaA Generics Rumors, Confirms Federal Raid in NJ

Princeton, NJ (Feb. 15, 2007)-Ranbaxy Inc., part of Ranbaxy Laboratories Ltd. (Gurgaon, India, www.ranbaxy.com) confirmed that federal officials-reportedly including representatives of the US Food and Drug Administration-conducted a search of its New Jersey offices on Feb. 14, 2007.

The company issued the following statement: “Ranbaxy said that this action has come as a surprise. The company is not aware of any wrongdoing. It is cooperating fully with the officials.”

Ranbaxy says its operations are continuing as normal.

Not selling stock
Also, Ranbaxy issued a prepared statement this week to respond to press reports in the Economic Times and Financial Express, which had reported on possible financing vehicles to fund a possible purchase of the generics business of Merck KGaA (Darmstadt, Germany, www.merck.de).

Ranbaxy referenced a Feb. 21, 2007 story in the Economic Times that suggested that promoters of Ranbaxy Laboratories Ltd., the Malvinder and Shivinder Singh families, may sell a small portion of their equity to private equity firms in order to raise money for the possible purchase of Merck’s generics business.

“This is completely untrue and misleading,” said Ranbaxy in prepared statement. “The promoters strongly deny any plan or move on their part to sell any portion of their equity stakes in Ranbaxy to any private equity firm or to any others.”

In response to a Feb. 21 report in the

Financial Express

that it planned to issue American Depository Shares to buy Merck’s generics business, Ranbaxy said it has no plans to issue any such shares.