Ranbaxy will be merged with sun pharma by means of a share swap. Read expert opinions, top news, insights and trends on the economic times. Closure of the deal about 10 days ago catapulted the sunranbaxy combine to the top of the pharmaceutical charts with a. This case attempts to enumerate a step by step procedure for calculating cumulative abnormal return car for the case of sun pharma ranbaxy merger. To bring on track halol facility, sun pharma has been facing supply constraints due to a ban on its own halol plant. The sun pharmaceuticalranbaxy combine, indias largest drugmaker, now has a toplevel team in place. Ranbaxy will merge into sun pharma and the shareholders of ranbaxy will receive 0. Shares of sun pharmaceutical industries and ranbaxy laboratories were trading higher by 3% each on the bourses ahead of record date set for the merger. Sun pharmaceutical industries limited sun pharma and ranbaxy laboratories limited ranbaxy set the indian pharmaceutical industry abuzz with excitement on april 6, 2014 when they released a press statement announcing that they had entered into definitive documents under which sun pharma would acquire 100 percent of ranbaxy.
In some of the countries it was seen as innovator company in line with pfizer, merck etc. Sun pharma announces closure of merger deal with ranbaxy beginning today, integration to focus on enhancing productivity. The sun pharma merger with ranbaxy will blend the complementary market strengths and areas of expertise of each company and create a powerful pharma. Sun pharma completed the acquisition of ranbaxy laboratories limited, an integrated, research based, international pharmaceutical company, on 25 th march 2015. The company was also assigned rights to nominate one nominee director on suns board.
The merger with ranbaxy laboratorie s was intended to help indias largest drug maker. Following the successful closure of the merger with drug maker ranbaxy, dilip shanghviled sun pharma said on wednesday that it is initiating the. Sun pharmas annual sales revenue before and after the acquisition of ranbaxy source. To study the need of sun pharma and ranbaxy merger. Sun pharma to delist ranbaxy after merger huffpost india. The exchange ratio represents an implied value of rs 457 for each ranbaxy share, a. Sun pharma ranbaxy acquisition linkedin slideshare. Sun pharma completes ranbaxy merger deal, ranbaxy shares to be delisted. Announcement regarding merger between sun pharma and. Sun pharmaceutical industries ltd has become the worlds fifth largest generics drugs maker after buying ranbaxy laboratories ltd from japans daiichi sankyo co.
Postmerger with ranbaxy, sun pharma becomes 5th largest. We specialize in strategic legal, regulatory and tax advice coupled with industry expertise in. Daiichi sankyo, sun pharma and ranbaxy reached agreement on the exchange ratio of 0. Sun pharma, ranbaxy move closer to finalizing merger. Acquisition, post merger, integration, pharmaceutical sector, synergies. Shweta mahadik 110 surendra saroj 111 sushmitha raikar 1 swapnil rajwade 115 trinette dmello 117 valen miranda 119 introduction sunpharmaceuticals sunpharmaceuticals was established in 1983 in vapi with five products to analyze sickness. After the acquisition, suns promoters stake will come down to 54. Without getting too much into financials and valuations, let us look at the deal from the perspective of each of the three stake holders daiichi sankyo, ranbaxy and. Press release for closure of sun ranbaxy merger sun pharma.
As of march 2014, the promoter holding in sun pharma and ranbaxy stands at 63. Competition commission of india combination registration. Transaction, sun would be indirectly acquiring ranbaxys shareholding of 46. Last week, after announcement of closure of merger deal with ranbaxy, sun pharma said that ranbaxy will be delisted from the indian stock exchanges. Over the trailing four quarters, sun pharma has overshot ranbaxy posting a cumulative turnover consolidated of rs 15,108. What was sun pharmas rationale for acquiring ranbaxy, despite the.
The merger, which is all stock, will give ranbaxy shareholders 0. In 2008, japanese pharmaceutical company daiichi sankyo acquired a controlling share in ranbaxy and in 2014, sun pharma acquired. Ftc allows ranbaxysun pharma merger divestiture order. Sun pharmaceutical industries ltd is buying ranbaxy laboratories ltd through an allstock merger in which five shares of ranbaxy will fetch four shares of sun pharma. The success of merger will depend on effectively resolving quality. Sunranbaxy deal in april 2014, sun acquired ranbaxy in a shares swap deal. Ebidta margin at 32% industry average 19% and net margin at 20% industry average 12%. Dcat value chain insights is an online information resource offering news and analysis on the issues impacting the business of pharmaceutical development and manufacturing.
Merger between sun pharma and daiichi sankyos ranbaxy. Sun pharma, a large indian drug maker, has announced acquisition of ranbaxy laboratories, another indian pharmaceutical company. Investors welcomed the completion of the merger, with sun pharma shares rising 1. Tell a friend print home investors archives sun pharma ranbaxy merger. The allstock deal will double sun pharmas revenues at a cost of eight per cent dilution in equity and earning per share. Sun pharma ranbaxy nishith desai associates nda is a research based international law firm with offices in mumbai, bangalore, silicon valley, singapore, new delhi, munich. Sun will expand ranbaxys overthecounter or otc brands to more countries. A merger in which sun pharma is the surviving company and ranbaxy is the company to be absorbed. Through this merger completion, ranbaxy will be delisted from the indian stock exchanges, with ranbaxy shareholders receiving 0.
Transcript sun pharma ranbaxy merger conference call. Sun pharma and ranbaxy merger cumulative abnormal return. Why is sun pharmaceutical in trouble after the ranbaxy. Sun pharma ranbaxy deal the financial model behind. Sun pharma and ranbaxy to merge, create giant pharma co. Sun pharmas acquisition of ranbaxy in a share swap deal, its stake was altered to 8. Under these agreements, ranbaxy will merge into sun pharma and the shareholders of ranbaxy will receive 0. It is an indian multinational pharmaceutical company headquatered in mumbai. Over the past 5 days, ranbaxy shares jumped 22%, while sun pharma. Information and announcements about this can be found on this page. The deal has reaped the benefit in the market price also as sun pharma market price after the date of announcement of merger with ranbaxy till the record the date of merger has touch a new high to inr 1200 per share i. Sun pharma completes ranbaxy merger deal, ranbaxy shares.
Ownership of ranbaxy changed twice over the course of its history. The acquisition is expected to be accretive to sun pharmas cash earnings per share in the first full year. Read expert opinions, top news, insights and trends on the economic. The merger will make sun pharma the largest pharma company in india with pro forma revenues of. Sunpharma and ranbaxy merge in 2014 to create indias largest and the worlds fifth largest pharma company. It was a well thought out decision by the management of sun pharmaceutical industries.
The big news of the week was about a megamerger of two of indias largest pharma companies, sun pharma and ranbaxy. On pro forma basis for 12 months ended december 2014, sun pharmas gross margin stands at 76% industry average 62%. Under the order, announced friday, sun must transfer ranbaxys rights to minocycline in 50mg, 75mg and 100mg tablet strength to indiabased torrent pharmaceuticals. The sun pharma merger with ranbaxy will blend the complementary market strengths and areas of expertise of each company and create a powerful pharma force. Ranbaxy was the first foreign generics manufacturer to sell drugs in the us. Experts say ranbaxy acquisition positive for sun pharma. In sunranbaxys case, however, sun pharmas results show a sequential decline in sales by 11.
Car is an academic way of analyzing merger performance based on stock market returns of both acquirer and. Ranbaxy was present in number of countries in the world with offices in most of them. Merger with ranbaxy laboratories poses challenges for sun. Dcat value chain insights covers the full spectrum of the pharmaceutical manufacturing value chain from raw materials to intermediates to drug substances small molecules and biologics to drug products solid. Yearonyear comparisons are not relevant because of the merger. Sun pharma announces closure of merger deal with ranbaxy. The dynamics of major indian takeovers their causes. To create worlds 5th largest specialty generic pharma company no. This is a stock only merger, which means no cash will be paid out. Takeover regulations, 2011, sun pharma has announced an open offer for 28. Drawn from the data of sun pharma investors book 2017 before merge, ranbaxy used aqua logistics services to. Batliboi llp as their valuers to arrive at the share swap ratio. Ranbaxy delists on completion of merger with sun pharma.