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Sun Pharma closes merger deal with Ranbaxy

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The combined entity’s manufacturing footprint covers five continents with products sold in over 150 nations

Sun Pharmaceutical Industries 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 speciality generic pharmaceutical company and the top ranking Indian pharma company with significant lead in market share.

The combined entity’s manufacturing footprint covers five continents with products sold in over 150 nations with a stronger presence in the US, India, Asia, Europe, South Africa, CIS and Russia and Latin America. Sun Pharma now offers a large basket of speciality 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 will allow Sun Pharma to significantly expand its R&D capabilities and global presence, especially across emerging markets, Enhance product portfolio and market depth in India, the US as well as rest of the world markets, 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.

Israel Makov, Chairman, Sun Pharma said, “The combined entity will capitalise on the expanded global footprint and enhance our dominance as a world leader in the speciality generics landscape. Sun remains committed to uncompromised product quality, 100 per cent compliance and promotes innovation to create the most dynamic global speciality generics pharma company.”

Dilip Shanghvi, Managing Director, Sun Pharma said, “It is an important milestone in the history of Sun Pharma as we enter into a new phase of growth.”

Remediation at manufacturing units which are currently 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 formalised an operational blueprint for realising its $250 million synergy target for year-3 through significant value creation across functions. The integration will cover all functions and markets globally.

EP News BureauMumbai

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