Moneycontrol Bureau
After consummating its USD 4 billion merger with Ranbaxy, Sun Pharmaceutical Industries Wednesday said this acquisition will not restrict the company from making any large acquisitions in future.
Addressing the media, founder and managing director Dilip Shanghvi said the company will look to invest more than USD 300 million in research and development (R&D) and is not considering any job cuts post the deal closure. He also said the combined entity will be able to invest more than USD 500 million a year in research.
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. USD 4.5 billion is expected to be the combined revenue of the two companies post merger.
Shanghvi, who replaced Mukhesh Ambani as India’s richest man on March 4, said the company's "most important focus" would be to regain the confidence of regulators. The company aims to grow faster than the market in each of its business, he added.
India's largest drugmaker by sales, Sun, is estimating USD 250 million synergies over the next three years. Shanghvi told reporters that Sun aims to become better and not just bigger and there will be no compromise with the ‘values’ of the company.
Meanwhile, Shanghvi also said that both Sun and Ranbaxy do not have significant presence in European markets but will continue to look for opportunities in some of the Asian markets including Japan.
The company does not hold any significant interest in biosimilars but is focusing immensely on its dermatology segment as that will be an important part of its growth story going forward, said Shanghvi.
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