Breaking News

Sun Pharma To Acquire Ranbaxy

April 7, 2014

Expands global presence and aims to overcome manufacturing woes

Sun Pharmaceutical Industries of Mumbai, India has entered an agreement to acquire Ranbaxy Laboratories from parent company Daiichi Sankyo, in a transaction valued at $4 billion. The combined company will be India's largest pharmaceutical company and the world's fifth-largest generic company, with an estimated annual revenue of $4.2 billion. The acquisition is subject to shareholder approval from both companies.
 
In January, the FDA prohibited Ranbaxy from selling drugs in the U.S. due to poor manufacturing practices, and from distributing any raw materials in the U.S. from its Toansa facility in India, including the sale of materials to other companies that distribute products in the U.S. Ranbaxy has five manufacturing facilities in India that are registered with the FDA: Paonta Sahib, Mohali, Toansa, Gurgaon and Dewas, all of which are now covered under the consent decree with the U.S. Department of Justice. 
 
According to a statement by Sun Pharma, the transaction includes $3.2 billion in stock and approximately $800 million of Ranbaxy debt. Ranbaxy shareholders are expected to own 14% of the new company and Daiichi Sankyo, will be the largest single shareholder.
                       
The acquisition will expand Sun Pharma’s global presence and manufacturing capabilities. The combined company will have 47 factories across five continents and operations in 65 countries. Dilip Shanghvi, Sun Pharma's managing director, said, "In high-growth emerging markets, it provides a strong platform which is highly complementary to Sun Pharma's strengths. We see tremendous growth opportunities."
blog comments powered by Disqus
  • CMO Systems

    CMO Systems

    Philip K. Burns, CRO Consulting||April 5, 2016
    A CMO system includes four aspects of the product lifecycle: regulatory, technical, compliance, and operations.

  • Injectables: The New Oral?

    Injectables: The New Oral?

    Tugrul Kararli, Kurt Sedo, Josef Bossart, PharmaCircle LLC||April 5, 2016
    The growth trend of injectables continues across the pharma landscape.

  • Biopharmaceutical Contract Manufacturing Contract Negotiations

    Biopharmaceutical Contract Manufacturing Contract Negotiations

    William Downey, HighTech Business Decisions||April 5, 2016
    Navigating the complexities of supply agreements.