Daiichi Sankyo Shares Climb After Unit’s Chief Quits

May 26 (Bloomberg) -- Daiichi Sankyo Co., Japan’s third- biggest drugmaker, climbed for a second session in Tokyo trading after its unprofitable Indian unit’s chief executive officer resigned as part of efforts to turn around the company.

Daiichi Sankyo rose 3 percent to 1,800 yen as of the 11 a.m. break on the Tokyo Stock Exchange, headed for the biggest two- day gain since April 2. The benchmark Nikkei 225 Stock Average dropped 0.9 percent.

The Japanese drugmaker, which bought a controlling stake in Ranbaxy Laboratories Ltd. last year, said on May 24 that Malvinder Singh quit as head of the unit and was replaced by Atul Sobti, formerly chief operating officer. Ranbaxy is forecasting an annual loss and battling a ban on some of its drugs in the U.S.

The management change reflects the “sense of crisis” by Daiichi Sankyo and spurred optimism the business may turn around, Yo Mizuno, an analyst at Daiwa Institute of Research Ltd., said by phone today. Mizuno rates the stock “outperform.”