Yahoo – AFP, 7 April 2014
New Delhi (AFP) - Top Indian drug giant Sun Pharmaceutical Industries said Monday it had agreed to buy its troubled peer Ranbaxy for $4.0 billion in stock, ending its ill-fated six-year control by Japan's Daiichi Sankyo.
Drugs manufactured by Ranbaxy are displayed at a chemist in New Delhi on May 14, 2013 (AFP Photo/Manan Vatsyayana) |
New Delhi (AFP) - Top Indian drug giant Sun Pharmaceutical Industries said Monday it had agreed to buy its troubled peer Ranbaxy for $4.0 billion in stock, ending its ill-fated six-year control by Japan's Daiichi Sankyo.
The deal
will create India's biggest drugs manufacturer by far and leave Daiichi Sankyo
with a significant stake in the combined entity.
The United
States, one of Ranbaxy Laboratories' biggest markets, has slapped import bans
on Ranbaxy's manufacturing plants for failing to meet "good manufacturing
practices".
Daiichi
Sankyo bought Ranbaxy in 2008, believing its dominance in cheap generic
medicines and developing markets would help the firm grow.
But the
Indian company has been a weight on Daiichi's books ever since due to its
regulatory problems.
Under the
acquisition terms, Ranbaxy shareholders will receive 0.8 shares of Sun Pharma
for each of their own shares, worth the equivalent of 457 rupees ($7.60).
US
regulators also banned some products by Sun Pharmaceuticals last month as the
US Food and Drug Administration scales up scrutiny of India's $14-billion-a-year
pharmaceutical sector amid worries about safety.
India,
known as "pharmacy to the world" due to its vast generics market,
supplies medicines to more than 200 countries -- many in the emerging world --
and is the second largest supplier of drugs to the United States after Canada.
No comments:
Post a Comment