Investors welcomed the completion of the merger, with sun pharma shares rising 1. At 1107 hours, sun pharma and ranbaxy laboratories were up 3% each at rs 1,052 and rs 837 respectively. Almost a year after announcing the deal, the merger of ranbaxy with sun pharma consummatedon march 24th 2015. Sun pharma to delist ranbaxy after merger huffpost india. April 6, 2014 was a red letter day for the indian pharmaceutical industry as sun pharmaceutical industries limited sun pharma and ranbaxy laboratories limited ranbaxy announced that they had entered into definitive documents for merger of ranbaxy with sun pharma transaction. The merger will see sun pharmas revenue jump by a healthy 40% but its operating profit will rise by a meagre 7. Experts say ranbaxy acquisition positive for sun pharma. More than a philosophy to live and work by, it is a global commitment to offer high quality, affordable pharmaceuticals to patients around the world. Pharmacy sector the pharmaceutical industry develops, produces, and markets drugs or pharmaceuticals licensed for use as medications. Sun pharma ranbaxy merger sun pharmaceutical industries ltd. As of march 2014, the promoter holding in sun pharma and ranbaxy stands at 63.
Sun pharmaceuticals acquisition of ranbaxy the case centre. Sun pharma, ranbaxy rise after regulatory nods for merger. What was sun pharmas rationale for acquiring ranbaxy, despite the. Merger of ranbaxy and sun pharma sun pharmaceuticals announced theirmerger with ranbaxy laboratorieson 6th april 2014.
The mumbaibased sun pharma, on april 6, announced that it would fully acquire ranbaxy in an allstock transaction with a total equity value of. The merger with ranbaxy laboratorie s was intended to help indias largest drug maker. In sunranbaxys case, however, sun pharmas results show a sequential decline in sales by 11. Strengthened global footprint pro forma cy 20 sales. Sun pharma ranbaxy nishith desai associates nda is a research based international law firm with offices in mumbai, bangalore, silicon valley, singapore, new delhi, munich. Merger acquisitionsun pharma ranbaxy free download as powerpoint presentation. Daiichi sankyo, sun pharma and ranbaxy reached agreement on the exchange ratio of 0. The indian pharmaceuticals market plays a major role in the global picture. Putting the multibillion dollar sun pharmaranbaxy deal under close scrutiny, fair trade watchdog cci has sought more information from them. Jun 25, 2019 ranbaxy laboratories was established in 1961 and is a member of the daiichi sankyo group tokyo, japan, a leading global pharma innovator. Sun pharma is valued in the market at rs 122,128 crore while.
Requisite approval of sun pharma and ranbaxy shareholders approval of the indian central government and various other regulatory bodies creating the worlds 5th largest specialty generic co sun pharma ranbaxy merger 6. After the merger closed, shares of sun pharma were trading 2. Sun pharma and ranbaxy, which had announced a usd 4billion deal in april this year, were asked by cci on wednesday to make public details of their proposed transaction in a. High court puts sun pharma and ranbaxy merger on hold. Shweta mahadik 110 surendra saroj 111 sushmitha raikar 1 swapnil rajwade 115 trinette dmello 117 valen miranda 119 introduction sunpharmaceuticals sunpharmaceuticals was established in 1983 in vapi with five products to analyze sickness. Merger between sun pharma and daiichi sankyos ranbaxy. This case attempts to enumerate a step by step procedure for calculating cumulative abnormal return car for the case of sun pharma ranbaxy merger. Sun pharma to acquire ranbaxy pharmaceutical technology. A merger in which sun pharma is the surviving company and ranbaxy is the company to be absorbed. It was a well thought out decision by the management of sun pharmaceutical industries. Merger with ranbaxy laboratories poses challenges for sun. India is the largest provider of generic drugs globally 20 per. The exchange ratio represents an implied value of rs 457 for each.
Sun pharma executives bag top slots in company after ranbaxy. Public announcement for buyback of equity shares march 18, 2020. Announcement regarding merger between sun pharma and daiichi. Sun pharmaceutical industries, a multinational pharmaceutical company and one of the major players in the generic drug market in india, already had 16 successful acquisitions in its kitty when it acquired ranbaxy in april 2014. Sun pharma has received almost all approvals for the merger.
The purchase price of inr737 represented a premium of 53. Sun pharma completed the acquisition of ranbaxy laboratories limited, an integrated, research based, international pharmaceutical company, on 25 th march 2015. Competition commission of india combination registration no. Ftc allows ranbaxysun pharma merger divestiture order. The exchange ratio represents an implied value of rs 457 for each ranbaxy share, a premium of 18% to ranbaxy s 30day volumeweighted average share price and a premium of 24. Talks about difference between mergers and acquisition, different types of mergers and finally the acquisition of ranbaxy by sun pharma. Ranbaxy whistleblower reveals how he exposed massive. Pursuant to the merger, daiichi sankyo will receive a stake of about 9% in the expanded sun pharma and will have the right to nominate one director to sun pharmas board of directors. Knowledge sun pharmaceuticals acquisition of ranbaxy. Under the order, announced friday, sun must transfer ranbaxys rights to minocycline in 50mg, 75mg and 100mg tablet strength to indiabased torrent. During fy15, the companys equity shares have increased to 2,406 million due to the merger of erstwhile ranbaxy laboratories ltd.
Sun pharma, a large indian drug maker, has announced acquisition of ranbaxy laboratories, another indian pharmaceutical company. To study the need of sun pharma and ranbaxy merger. In april this year, ranbaxy reached a deal for its merger with sun pharma. Creating the worlds 5 th largest specialty generic co sun pharma ranbaxy merger. Ranbaxy delists on completion of merger with sun pharma. Ranbaxy laboratories limited annual report 2014 4 a global commitment towards quality and patients the credo of quality and patients first has become a way of life at ranbaxy. Announcement regarding merger between sun pharma and. It is an indian multinational pharmaceutical company headquatered in mumbai. Sun pharma to acquire ranbaxy ranbaxy shareholders to get 0.
Daiichi sankyo is also a majority shareholder of ranbaxy. On 11th june 2008, daiichi sankyo the third largest pharmaceutical company in japan made an offer to buy control stake in ranbaxy, the largest drugmaker by revenue in india. Sun pharmaceutical industries ltd has become the worlds fifth largest generics drugs maker after buying ranbaxy laboratories ltd from japans daiichi. Whether the merger is positive for sun original shareholders in the long run whether the merger has resulted in an. Sun pharma said it will take a hit on profit due to post merger integration process with ranbaxy. Under these agreements, ranbaxy will merge into sun pharma and the shareholders of ranbaxy will receive 0. Sun pharma, ranbaxy gain ahead of merger business standard. Read more about sun pharma, ranbaxy gain ahead of merger on business standard. The deal has reaped the benefit in the market price also as sun pharma market price after the date of announcement of merger with ranbaxy till the record the date of merger has touch a new high to inr 1200 per share i. Sun pharmas takeover of ranbaxy made it the largest indian drugmaker selling into the u. We specialize in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
At 1107 hours, sun pharma and ranbaxy laboratories were up. Even though sun pharma is smaller than ranbaxy in terms of sales, market values the company much higher than ranbaxy. After the acquisition, suns promoters stake will come down to 54. Merger completed with approval from high courts in india and other regulatory agencies 2 merger method. Dilip sanghvi is known for turnaround of acquired company. Sun pharma completes ranbaxy merger deal, ranbaxy shares to be delisted. The move will make the company the largest pharma firm in india, while daiichi sankyo majority owner of ranbaxy will become the second largest shareholder in sun pharma with a 9% stake and the right to nominate one director to sun pharmas board of directors. Yearonyear comparisons are not relevant because of the merger. To create worlds 5th largest specialty generic pharma company no. It is an indian multinational pharmaceutical company headquatered in.
Ranbaxy will be merged with sun pharma by means of a share swap. Sun pharmaceutical industries ltd has become the worlds fifth largest generics drugs maker after buying ranbaxy laboratories ltd from japans daiichi sankyo co. The merger of sun pharma and ranbaxy will create a usd 4. Strategy consulting sun pharmaceuticals acquisition of ranbaxy submitted by gopinath dhavala2016pgp2 prithviraj nag2016pgp285 tushar gupta2016pgp411 environment. Sun pharma ranbaxy acquisition linkedin slideshare. Before merger gains fypharma ranbaxy market price as on april 2012 287 458 market price as on april 20 407 451 return 41. In sun ranbaxy s case, however, sun pharma s results show a sequential decline in sales by 11. Sun pharmaceuticals acquisition of ranbaxy business. It is the third largest in terms of volume and thirteenth largest in terms of value. Over the past 5 days, ranbaxy shares jumped 22%, while sun pharma. Takeover regulations, 2011, sun pharma has announced an open offer for 28. Mar 12, 2015 sun pharma has received almost all approvals for the merger.
Ranbaxy sun pharma merger deal may close by 2014 end. Sun pharmas exranbaxy sales reps threaten allindia. Car is an academic way of analyzing merger performance based on stock market returns of both acquirer and. Announcement regarding closure of merger between daiichi. Sun pharma and ranbaxy merger cumulative abnormal return. Sun pharma completes ranbaxy merger deal, ranbaxy shares. Information and announcements about this can be found on this page. Ranbaxy has been going through frequent regulatory runins with overseas health watchdogs including in the us and europe. Read expert opinions, top news, insights and trends on the economic times. Sun pharma announces closure of merger deal with ranbaxy. Public announcement for buyback of equity shares march 18. Fda prohibits ranbaxy s toansa, india facility from producing and distributing drugs for the u. The announcement came amidst reports of faltering standards at ranbaxys.
Shares of sun pharma witnessed massive selling pressure, plunging over 16 percent after the drug major said it expects to take a hit on profit for the fiscal 201516 mainly due to integration process with ranbaxy. The calculation methods employed by walker were generally accepted methods like discounted cash flow dcf analysis. The proposed transaction has been unanimously approved by the boards of directors of sun pharma, ranbaxy, and ranbaxys controlling shareholder, daiichi sankyo. Through this merger completion, ranbaxy will be delisted from the indian stock exchanges, with ranbaxy shareholders receiving 0. Following the successful closure of the merger with drug maker ranbaxy, dilip shanghviled sun pharma said on wednesday that it is initiating the integration process, which will make the. Sun pharma ranbaxy deal the financial model behind. Before merger gains fypharmaranbaxy market price as on april 2012 287 458 market price as on april 20 407 451 return 41. Sunpharma ranbaxy acquisition pharmaceutical industry. After the merger, ranbaxy would cease to exist and the operations of the combined entity would be spread across 65 countries with 47 manufacturing facilities. Taking forward its acquisition of ranbaxy laboratories, sun pharma has put in place a team of top executives, including dilip shanghvis son aalok shanghvi, to lead the businesses of both the organisations. Pharmaceutical companies are allowed to deal in generic or brand medications and medical devices. However, the competition commission of india approval is given on condition that both ranbaxy and sun pharma will have to divest. Sun pharma is valued in the market at rs 122,128 crore while ranbaxy attracts a valuation of only rs 19,070 crore. In 2008, shortly after ranbaxy came under new ownership, the fda blocked 30 ranbaxy drugs from coming into the united states from two indian plants.