Sun Pharma completes Ranbaxy acquisition
pharmafile | March 26, 2015 | News story | Manufacturing and Production, Sales and Marketing | Daiichi Sankyo, India, Ranbaxy, Sun Pharma, cci
Sun Pharma has closed its mega merger deal with Ranbaxy and begun the integration of the two businesses.
The combined company is now the fifth-largest generics firm in the world, and makes it the largest pharma firm in its native India.
Sun says that the acquisition will allow it to expand its R&D capabilities, increase its presence in emerging markets, and ‘strengthen its M&A bandwidth’.
“The combined entity will capitalise on the expanded global footprint and enhance our dominance as a world leader in the specialty generics landscape,” adds Israel Makov, chairman of Sun Pharma.
“We remain committed to uncompromised product quality, 100% compliance, and promoting innovation to create the most dynamic global specialty generics pharmaceutical company. We believe that our shareholders, customers and employees will share our excitement in the potential of this combination and thank them for their continued support.”
The firms says that the combined entity’s top priorities will be achieving 100% compliance in manufacturing in line with regulator expectations, increasing R&D productivity to introduce new innovative products, and strong business growth across the US, Indian, and other markets.
Dilip Shanghvi, managing director of Sun Pharma, says: “It is an important milestone in our history as we enter into a new phase of growth. We will continue to focus on gaining trust of the regulators globally while continuing to develop products based on patient needs and leverage them to become brand leaders globally.”
Both Sun and Ranbaxy have provoked the ire of regulators over the past year with escalating manufacturing woes, as well as claims of insider dealing that almost brought the merger to an end.
The deal was signed off by the US Federal Trade Commission in February, subject to Ranbaxy selling its interests in generic versions of the antibiotic minocycline.
Similar conditions were set by the Competition Commission of India (CCI) when it approved the acquisition in December. The companies were told to sell seven of their overlapping products in the country in areas where the combined entity could control up to 95% of the market – which the CCI called a ‘near monopoly’.
Japanese firm Daiichi Sankyo, of which Ranbaxy is a subsidiary, now becomes the second largest shareholder in Sun Pharma, and the companies say that they will “work together to leverage this relationship for global business growth”.
George Underwood
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