Moneycontrol Bureau
Sun Pharmaceutical Wednesday began 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 company said.
Addressing the media, Israel Makov, Chairman, Sun Pharma, said: “The combined entity will capitalize on the expanded global footprint and enhance our dominance as a world leader in the specialty generics landscape.”
The merger has fortified Sun Pharma’s position as the world’s fifth-largest specialty generic pharmaceutical company and the top 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.
“Sun remains committed to uncompromised product quality, 100 percent compliance and promotes innovation to create the most dynamic global specialty generics pharmaceutical company,” Makov said.
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 combination allows Sun Pharma to significantly expand its R&D capabilities and global presence, especially across emerging markets. It will help the company to enhance product portfolio and market depth in India, US as well as rest of the world markets. Moreover, aid in improving strategic flexibility, ability to pursue partnerships and strengthen M&A bandwidth.
Commenting on the combined entity’s priorities, 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. 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.”
According to Shanghvi, the pharma business growth is linked with managerial capabilities. He said the company would focus, nurture and retain the talents in the combined entity.
“It also increases our ability to spend on R&D. Both the companies separately invest something like USD 250 million annually in research. Because of the investment that we are planning for further developing MK 32/22, the product that we liaison from Merck for psoriasis, we would be looking forward to increasing our investment in R&D may be in excess of USD 300 million,” he said.
Shanghvi said that Ranbaxy acquisition does not preclude Sun from doing other large acquisitions, adding that the company may not appeal legal judgment for Ranbaxy on Nexium and Valcyte.
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.
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