Daiichi Sankyo acquires Ranbaxy
pharmafile | June 13, 2008 | News story | Sales and Marketing |
Japanese company Daiichi Sankyo is set to take over Ranbaxy, the largest manufacturer of generic drugs in India.
Ranbaxy will retain some autonomy as a standalone firm but handover nearly 40% shares in the deal at a cost to Daiichi Sankyo of up to $4.6 billion.
The companies said uniting a generics and innovative pharmaceutical business will create a group that covers the full spectrum of the pharmaceutical sector, and open new opportunities for growth.
Takashi Shoda, president of Daiichi Sankyo, said the move would help the company achieve its ambition of becoming a global leader.
He added: "This complementary combination represents a perfect strategic fit and delivers a considerable opportunity for the future growth of the new Daiichi Sankyo Group."
The deal allows Daiichi Sankyo access to Ranbaxy's low-cost R&D manufacturing facilities in India, which cut spending and improve margins on products.
The merged group anticipates its expanded global reach will provide new opportunities for the generic and branded side of its business, in both mature and emerging markets.
Daiichi Sankyo, a company known for its high-blood pressure drug Benicar, also has an agenda to expand its presence in Europe. Last month it made the acquisition of U3 Pharma, a German biotechnology company focusing on research into antibodies for the treatment of cancer.
It has also recently purchased the European rights to the osteoporosis medication Evista from Eli Lilly.