Sun Pharmaceutical Industries plans to purchase Ranbaxy Lboratories from Daiichi Sankyo Ltd for $3.2 B in stock plus taking on $800 M in Ranbaxy debt as announced yesterday. The combined Sun and Ranbaxy will become the fifth biggest specialty generics company in the world and the largest pharmaceutical company in India.
Further, Sun "sources" say they plan to stop using the Ranbaxy trade name in the US. Ranbaxy of course has run afoul of the FDA over the past year and has four current plants tat the FDA will not allow to import drugs to the US. Sun says that its job one is to work on those Ranbaxy quality issues -- issues that Daiichi was never able to resolve. Sun's VP of Finance says that "Overall Ranbaxy brand has value. We will find ways of using it and preserving it." Mostly this will be done in countries outside the US. See The Economic Times here and here.
Posted by Bruce Lehr April 9th 2014.