It’s been one thing after the next since Daiichi Sankyo’s deal last year for control of Indian generics maker Ranbaxy, including the FDA’s banning imports from certain Ranbaxy plants and accusing the company of falsifying data. The news over the weekend that Ranbaxy CEO Malvinder Mohan Singh (pictured) was resigning has spurred optimism that Daiichi might tighten its grip on Ranbaxy and turn things around. Daiichi currently has a 64% stake in Ranbaxy. Shares of both companies jumped in overseas trading, Dow Jones Newswires reported . This is the latest development for pair of companies that have significant cultural differences, however, and it carries risks of its own, the Financial Times reports . “The Japanese-Indian corporate relationship is barely tested outside of the carmaking industry

in India,” the newspaper says. “And now the Japanese owners are proceeding without the founding family on board in a challenging operating environment.” If the companies can work together effectively, they both bring strengths to the table: Ranbaxy has shown itself to be an aggressive patent challenger that has broken into emerging markets, while Daiichi has focused on innovation and specific developed markets, the FT notes. Ranbaxy COO Atul Sobti has stepped into the CEO spot. Daiichi managing director Tsutomu Une has replaced Singh as Ranbaxy’s board chairman, another change that gives Daiichi a stronger role in decision-making, a Daiichi spokesman told Dow Jones. Photo: Bloomberg News

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Will Singh’s Exit Get Ranbaxy, Daiichi Sankyo Back on Track?