Sun Pharma closes merger deal with Ranbaxy
Sun Pharmaceutical Industries has begun the integration of Ranbaxy's business following the successful closure of its merger. The integration, planned by Sun Pharma since the announced merger in April 2014, will focus on supporting strong growth. According to Sun Pharma, the merger has fortified its position as the world's fifth largest specialty generic pharmaceutical company and the top ranking Indian pharma company.
The combined entity's manufacturing footprint covers five continents with products sold in over 150 nations. Sun Pharma now offers a large basket of specialty and generic products encompassing a broad range of chronic and acute prescription drugs as well as a ready foray into the global consumer healthcare market.
Post-merger, Daiichi Sankyo becomes the second largest shareholder in Sun Pharma and both companies will work together to leverage this relationship for global business growth.
The combination allows Sun Pharma to:
- Significantly expand its R&D capabilities and global presence, especially across emerging markets
- Enhance product portfolio and market depth in India, U.S. as well as Rest of the World markets
- Improve strategic flexibility, ability to pursue partnerships and strengthen M&A bandwidth.
Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy.
Remediation at manufacturing units which currently are in deviation from cGMP norms will remain a critical focus. Sun Pharma is working with global consultants assisting its internal teams to achieve compliance objectives. It has formalized an operational blueprint for realizing its $250 million synergy target for year-three through significant value creation across functions. The integration will cover all functions and markets globally.