Ranbaxy on Tuesday said that it has entered into a business alliance with Orchid Chemicals & Pharmaceuticals, involving multiple geographies and therapies for both finished dosage formulations and active pharmaceutical ingredients (raw materials). However, sources said the option of acquiring additional equity in Orchid, and announcing an open offer at a later stage, could not be ruled out. Making an official statement for the first time on the issue, Ranbaxy CEO and MD Malvinder Singh said Solrex, which bought 14.7% cent equity in the Chennai headquartered company, was a wholly owned subsidiary of Ranbaxy. Singh told reporters here: "We have signed a global alliance with Orchid, which is a win-win for both the parties. The multi-faceted agreement will be mutually beneficial and synergistic, allowing both to leverage each others inherent strengths. TOI had first reported on April 17 that Ranbaxy was looking at a business alliance with Orchid, similar to the ones reached with mid-sized companies over the last year. When asked whether the company had plans to raise its stake further in Orchid, which would have triggered the takeover code, he said "no comments, adding "we do not believe in hostile takeovers, and follow the policy of live and let live'. Talks have been on for a while between the two parties to work out an agreement; with the alliance being signed a couple of days back. Sources said that Orchid promoter K Raghvendra Rao, left with little support from institutions, had no option but to agree to the alliance. He had earlier taken a firm stand against Solrex's gradual acquisition of equity in his company early this month, and vowed to ward off