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Ranbaxy & Sunpharma M&A
Ranbaxy & Sunpharma M&A
Pranali Parkar
Ajoy
Louis
Introduction
Ranbaxy Laboratories Limited is an Indian multinational
Company of the year award. In the 2012, 2013 and 2014 Brand Trust
Reports, Ranbaxy was ranked 161st, 225th and 184th respectively
among India's most trusted brands.
As of 2013, Ranbaxy was exporting its products to 125 countries
Why Ranbaxy?
Ranbaxy has got a lot of ANDA's (Abbreviated New
Drug Application) approved for marketing in USA.
Their problem is to find an API plant because main
source of API was from Toansa. If Sun Pharma fills this
gap, Ranbaxy can begin its export to the USA. So, Sun
Pharma has got into this deal at the right time and
deal has an upside for all the shareholders.
Sun Pharmas managing director Dilip Shanghvi has
acquired a reputation for acquiring companies in
trouble at a good price, and then turning around their
operations
Acquisition by Daiichi-Sankyo
In June 2008, Daiichi-Sankyo acquired a 34.8%
stake in Ranbaxy for a value $2.4 billion.
In November 2008, Daiichi-Sankyo completed the
takeover of the company from the founding Singh
family in a deal worth $4.6 billion by acquiring a
63.92% stake in Ranbaxy.
Ranbaxy's Malvinder Singh remained as CEO after
the transaction.
The addition of Ranbaxy Laboratories extended
Daiichi-Sankyo's operations, with the combined
company worth about US$30 billion.
In 2009 it was reported that former Novartis Senior
Vice-President Yugal Sikri would lead the India
operations of Ranbaxy Laboratories.
Structure Pre-Transction
Transction
Conclusion
It was a great deal overall and a win-win deal for
Sunpharma,the operational profit also increased after
the acquisition.
Target US$ 300 million in synergy benefits from the
Ranbaxy acquisition by FY18
Develop more products through expanded R&D team
for global markets.
Focus on developing complex products across
multiple dosage forms.