How Daiichi lost Rs 6,034 crore in Ranbaxy U-turn

Currency values were the bigger villain over the 7 years in a troubled investment

The steep rupee fall of 47 per cent to the dollar in the past seven years seems to have dealt a greater blow to Japanese pharmaceutical giant Daiichi Sankyo than the value destroyed due to Ranbaxy’s regulatory complications in recent years. A Business Standard  analysis of the prices and exchange rates of the two deals, separated by seven years, that marked the entry and exit of Daiichi, in and from Ranbaxy, shows that while it might have made a small market gain on rupee terms, the loss on account of a climbing dollar was multifold. A less sharper fall of the yen against the ...