The combined entity will create India’s largest pharma company and world’s fifth-largest specialty generics company
In a major development in the Indian pharmaceutical industry, global giant Sun Pharma, on Monday, announced the acquisition of Ranbaxy Laboratories Ltd. Ranbaxy, which is one of the biggest generic drug makers of India, had recently been questioned by the US for not meeting Good Manufacturing Practices (GMP).
In a joint statement, both the drug companies have conveyed that they have entered into definitive agreements pursuant to which Sun Pharma will acquire 100 per cent of Ranbaxy.
The combination of Sun Pharma and Ranbaxy will create the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. The combined entity will have operations in 65 countries, 47 manufacturing facilities across five continents.
Dilip Shanghvi, managing director of Sun Pharma, said, “Ranbaxy has a significant presence in the Indian pharma market and in the US. We see tremendous growth opportunities and are excited with the prospects to create lasting value for both our shareholders through a successful combination of our franchises.”
The proposed transaction has been unanimously approved by the boards of directors of Sun Pharma, Ranbaxy and Ranbaxy’s controlling shareholder, Daiichi Sankyo. Ranbaxy’s board and Sun Pharma’s board have recommended approval of the transaction to their respective shareholders.
The statement says that Ranbaxy has recently received a notice from the United States attorney for the district of New Jersey requesting that Ranbaxy produce certain documents relating to issues previously raised by the US Food and Drug Administration (USFDA) with respect to Ranbaxy's Toansa facility in India. In connection with the transaction, Daiichi Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the said notice.
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