Current event analysis: Ranbaxy first acquired

by Daiichi Sankyo, then by Sun Pharma

SUBMITTED TO: TIRTHANK SHAH
SUBMITTED BY:
KARAN JOSHI
MOHD HUSSAIN ALAM
PARMEET BAGHEL
SONU CHOUBEY
ABHISHEK JOSHI
When did Daiichi Sankyo acquired Ranbaxy, amount
for which it is acquired?
Daiichi Sankyo acquired Ranbaxy in November 2008,
$ 4.6 billion.
Why eventually Daiichi Sankyo sold Ranbaxy to Sun
Pharma?
They must have thought that they can't settle the problems
of this company and its better to go out now. Also Sun
Pharma might have taken indemnities from Daiichi for any
further damages which can occur from USFDA
$500 million in fines. In 2013, Ranbaxy pled guilty to US
felony charges and paid $500 million in
fines for manufacturing substandard drugs and lying about it
Was acquisition of Ranbaxy by Daiichi Sankyo bad
investment a big mistake?
Yes!
FDA problem
Faking test results: In January, the FDA reported workers at
one Ranbaxy manufacturing facility in Punjab were
retesting drug ingredients and raw materials until
acceptable results are obtained
Compare & Comment: What amount Daiichi Sankyo
paid to buy Ranbaxy & what amount it received when
it sold to Ranbaxy to Sun Pharma?

$4.6 billion paid by Daiichi Sankyo to acquired Ranbaxy.
$3.2 billion paid by Sun Pharma to Daiichi Sankyo.
Wont Sun Pharma face problems which Daiichi
Sankyo faced with Ranbaxy?
I think, Sun Pharma wont get problem. Itll start work to correct all the issues
which laying.
The promoters of Sun have a proven track record of turning around distressed
businesses. Under Sun, Ranbaxy is likely to become more productive and accretive.
Thank You