Business / Industry Sectors
Sun Pharma acquires Indian major - Ranbaxy Laboratories
10/04/2014
Sun Pharma earlier acquired Israel’s TARO Pharmaceuticals and has interests in Bio Light Israel Life Sciences Investments

The US$ 3.2 billion deal with Daiichi Sankyo Co. Ltd is the second largest acquisition that the Indian pharmaceutical sector has ever seen, and an audacious one at that. Ranbaxy has been facing serious issues with exports to the US (the most important part of its business) since 2009. All its facilities exporting drugs to the US have been barred from doing so by the US Food and Drug Administration (FDA).

“For Sun, it is not the size of the deal which matters…it is the quality of business (we acquire) and its integration,” Dilip Sanghvi, founder of Sun Pharmaceuticals Ltd.,  said.. He added that Sun Pharma’s primary focus will be to comply with regulatory standards, a key issue facing Ranbaxy now, and make it healthy “before jumping into the business priorities”.

The acquisition will make Sun Pharma the largest Indian generic drug maker and the fifth biggest in the world. Apart from India and the US, Sun Pharma has manufacturing facilities in Israel, Mexico, Hungary, Canada, Bangladesh and Brazil.

In 2010, it acquired a 66%stake in Israel-based Taro Pharmaceutical Industries Ltd after a four-year legal battle with its founders—the Levitt family, a move that more than doubled its revenue in the US to US$1.1 billion from US$ 484 million.

Apart from Sun Pharma, Sanghvi also has interests in publicly traded Sun Pharma Advanced Research Co.Natco Pharma Ltd and Bio Light Israel Life Sciences Investments Ltd.

 

Source: LIVE MINT & THE WALL STREET JOURNAL

Image courtesy:  www.bing.com

 

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