Sun Pharmaceutical announced that Ranbaxy will be delisted from the Indian Stock Exchange as their $4 billion merger is completing.
Reportedly, while filing to the BSE, Sun Pharma said, “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.”
Worth mentioning here is the fact that the merger has fortified Sun Pharma’s position as the world’s fifth largest speciality generic pharmaceutical firm and the top ranking Indian Pharma Company with significant lead in market share, added the brand.Commenting on the matter, Dilip Shanghvi, MD, Sun Pharma said, “We will continue to focus on gaining trust of the regulators globally while continuing to develop products based on patient needs and leverage them to become brand leaders globally.”
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 & Russia and Latin America.
Post-merger, Daiichi Sankyo becomes the second largest shareholder in Sun Pharma and both the companies will work together to leverage this relationship for global business growth, said Sun Pharma.
Meanwhile, Sun Pharma Chairman Israel Makov said, “The combined entity will capitalize on the expanded global footprint and enhance our dominance as a world leader in the speciality generics landscape.”
Ranbaxy has been facing issues raised by the FDA, US authorities and health regulators in the European markets.
In 2013, it had pleaded guilty to ‘felony charges’ relating to manufacture and distribution of certain adulterated drugs made at two India units, the US subsidiary of Ranbaxy had agreed to pay $500 million in settlement with the US authorities.
Significantly, Sun Pharma said three key priority levers to drive growth in the combined entity have been identified which includes achieving 100 per cent compliance in manufacturing in line with Regulator expectations, increase R&D productivity to introduce new innovative products and strong business growth across the US, India, and rest of the world markets.
