Sun Pharmaceutical agreed to m&a transaction to buy competitor Ranbaxy Laboratories for $3.2 billion from Japan’s Daiichi Sankyo, which paid 61 percent more for the company five years ago.
Ranbaxy investors will get 0.8 share in Sun for every one of their shares, or about 457 rupees.
Daiichi Sankyo, which owns 63.5 percent of Ranbaxy, paid 737 rupees a share in 2008.
Ranbaxy would give Sun control over the competitor’s pipeline of generic products and help it expand in markets including Russia and Brazil.
The company also needs to resolve production problems that led the Food and Drug Administration to ban four Ranbaxy plants from exporting to the U.S.
The deal will also give Sun Pharma access to three major products that Ranbaxy has tentative FDA approval to sell in the U.S.: generics of Novartis’s blockbuster Diovan, AstraZeneca’s Nexium and Roche’s Valcyte.
Since Ranbaxy was first to file applications for the three products, it’s entitled to 180 days of exclusivity if given final FDA clearance.
Ranbaxy’s products include the generic version of Pfizer’s cholesterol-lowering drug Lipitor.
For further deal information visit Current Agreements (subscription required)
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