Sun Pharmaceutical to take over Ranbaxy

Sun Pharmaceutical is set to buy Ranbaxy Laboratories at $3.2 billion in the biggest acquisition in the domestic pharmaceutical sector and is heading towards become fifth-largest generic drug maker in the world.

The major Stakeholder in current Ranbaxy, Japan’s Daiichi Sankyo has agreed on an all-share deal in which Ranbaxy shareholders will receive 0.8 of a Sun Pharmaceutical share against each Ranbaxy share. Daiichi Sankyo is also likely to hold around 9% share in Sun Pharmaceutical after the deal.

The move has been seen as a master stroke from Dilip Shanghvi, as Sun is now going to capture Ranbaxy’s market in India easily and may become the ruler in Indian pharmaceutical industry.

India’s largest generic drugs seller Ranbaxy has been struggling after being banned from exporting drugs to the U.S. over its alleged ‘poor standards’. The deal between Sun and Ranbaxy could intensify competition in the international market too. It could force Abbott to search for a partner such as GSK Pharma to retaliate Sun-Ranbaxy combine.  

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