Big pharma, M&A

Merger completed between Ranbaxy and Sunpharma

Posted on 25 March 2015

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Mumbai, India: March 25, 2015 – Sun Pharmaceutical Industries Ltd., begins the integration of Ranbaxy’s business following the successful closure of its merger. The integration, planned by Sun Pharma over many months, will focus on supporting strong growth. The merger has fortified Sun Pharma’s position as the world’s fifth largest specialty generic pharmaceutical company and the top ranking Indian Pharma company with significant lead in market share. The combined entity’s manufacturing footprint covers 5 continents with products sold in over 150 nations with a stronger presence in US, India, Asia, Europe, South Africa, CIS & Russia and Latin America.

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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 integrated culture theme, “Growing Together”, represents the core objective of this merger focusing on improving productivity, compliance commitment, focus on quality and sustainable growth. Through this merger Sun Pharma emerges as India’s first truly global pharmaceutical company.

The combination allows Sun Pharma to: 1. Significantly expand its R&D capabilities and global presence, especially across emerging markets 2. Enhance product portfolio and market depth in India, US as well as Rest of the World markets 3. Improve strategic flexibility, ability to pursue partnerships and strengthen M&A bandwidth Following the closure of this transaction, Ranbaxy will be delisted from the Indian Stock Exchanges.

Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy. On pro forma basis for 12 months ended December 2014, Sun Pharma’s gross margin stands at 76% (Industry average 62%); EBIDTA margin at 32% (industry average 19%) and Net margin at 20% (Industry average 12%).

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