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Sun Pharma to buy rival in India for $3.2B
Publication Date : 08-04-2014
In the biggest deal in two years, Sun Pharmaceutical Industries announced it would fully acquire rival Ranbaxy Laboratories in an all-stock transaction valued at US$3.2 billion.
Sun and Ranbaxy said they would become the largest pharmaceutical company in India, with an estimated combined revenue of $4.2 billion, and the fifth-largest speciality generics company in the world.
Ranbaxy, controlled by Daiichi Sankyo of Japan, is struggling with quality compliance issues as all four of its plants in India have been banned by the Food and Drug Administration from exporting products to the USA. Sun's Karkhadi plant is also barred from shipping products to the USA for violation of good manufacturing norms.
The combined entity will have operations in 65 countries, 47 manufacturing facilities across five continents and a significant platform of speciality and generic products marketed globally, including 629 ANDAs (abbreviated new drug applications).