Sun Pharma, Daiichi terminate transaction pacts

In April 2014, Sun Pharma had announced the acquisition of troubled rival Ranbaxy in an all-stock transaction worth USD 4 billion that includes USD 800 million debt.

The parties agreed that the umbrella agreement as well as the executed transaction agreements will be terminated with effect as of the closing date, the Mumbai-based drug major said.

"There is no material impact of such termination on either standalone or consolidated operations/ financial operations of our company. Additionally, the said termination agreement does not apply to, or have an impact upon, other business relationship that the parties to the said termination agreement may have in force," it added.

Last year Daiichi sold its entire stake of around 9 percent in Sun Pharmaceutical Industries for over Rs 20,420 crore, which it received after merger of Ranbaxy in the Indian firm, ending its seven years of tumultuous stay in the country.

The Japanese firm, which had forayed into the growing Indian pharmaceutical market by buying a majority stake in Ranbaxy Laboratories in 2008 for Rs 22,000 crore, sold over 21 crore shares in Sun Pharma.

Sun Pharma shares today ended at Rs 780.05 apiece on the BSE, down 0.87 percent from previous close.