March 28, 2015

Sun Pharma Concludes Take Over Merger Of Ranbaxy Laboratories

Sun Pharmaceutical Industries Limited, the multinational pharmaceutical company headquartered in Mumbai, Maharashtra, few days ago on Wednesday announced the take over and closure of its merger with Ranbaxy Laboratories.

The giant multinational pharmaceutical company manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and the United States.

In letters dated 25th March to physicians practicing and doing business with it, the Nigerian arm of Ranbaxy Laboratories, Ranbaxy Nigeria Limited, confirms this, "We are pleased to inform you that Sun Pharma has completed the acquisition of Ranbaxy. This landmark transaction has triggered remarkable tectonic shifts in the international pharmaceutical company."

Sun Pharma Takes Over Ranbaxy Laboratories

"As a combined entity, Sun Pharma is today the fifth largest specialty generic pharmaceutical company in the world", Ranbaxy Nigeria concluded in its letter.

Indeed, this is a remarkable feat that will have tremendous effect on the industry in the years to come. Sun Pharma, had during its announcement on Wednesday, added that the integration will deliver synergies worth $250 million in three years.

The company's managing director Dilip Shanghvi also at the occasion told reporters, "The merger has created a combined entity which has much more managerial capability. We will look to retain and nurture the talent."

He revealed that the company would invest more than $300 million in research and development in 2015, which would be six to seven percent of the combined revenue.

Following the merger, Ranbaxy is delisted from stock exchanges where it was hitherto listed while Ranbaxy shareholders will receive equal shares of Sun Pharma for each share of Ranbaxy they hold.

As already noted, this merger makes Sun Pharma the world's fifth largest maker of generic drugs after Teva, Sandoz, Activas and Mylan. It also elevates it to become the largest pharmaceutical company in India with a market share of 9.2 percent and sales of $1.1 billion.

The US Federal Trade Commission (FTC) had approved the merger back in January 2015, but the Punjab and Haryana High Court of India just approved it earlier this month.

On March 23, the Competition Commission of India (CCI) approved the Sun Pharma and Ranbaxy sale of seven brands to Emcure Pharma to comply with the conditional nod for their merger.

Related article: Similar recent medical news on Medical Notes

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