Sun Pharma to delist Ranbaxy on completion of $4-bn merger

Sun Pharmaceutical on Wednesday said Ranbaxy will be delisted from the Indian bourses following the completion of their $4-billion merger.

"Following the closure of this transaction, Ranbaxy will be delisted from the Indian Stock Exchanges. Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy," Sun Pharma said in filing to the BSE.

The merger has fortified Sun Pharma's position as the world's fifth largest speciality generic pharmaceutical firm and the top ranking Indian pharma company with significant lead in market share, it added.

Sun Pharma MD Dilip Shanghvi said: "We will continue to focus on gaining trust of the regulators globally while continuing to develop products based on patient needs and leverage them to become brand leaders globally."     

The combined entity's manufacturing footprint covers five continents with products sold in over 150 nations with a stronger presence in the US, India, Asia, Europe, South Africa, CIS & Russia and Latin America, it added.

Post-merger, Daiichi Sankyo becomes the second largest shareholder in Sun Pharma and both the companies will work together to leverage this relationship for global business growth, Sun Pharma said.

"The combined entity will capitalise on the expanded global footprint and enhance our dominance as a world leader in the speciality generics landscape," Sun Pharma Chairman Israel Makov said.

Ranbaxy has been facing issues raised by the Food and Drug Administration, US authorities and health regulators in the European markets.           

In 2013, it had pleaded guilty to ‘felony charges’ relating to manufacture and distribution of certain adulterated drugs made at two India units, the US subsidiary of Ranbaxy had agreed to pay $500 million in settlement with the US authorities.

Sun Pharma said three key priority levers to drive growth in the combined entity have been identified by it.

These include achieving 100 per cent compliance in manufacturing in line with Regulator expectations, increase R&D productivity to introduce new innovative products and strong business growth across the US, India, and rest of the world markets.

Shares of Sun Pharma were trading at Rs 1,061.20 per scrip in the afternoon trade, up 2.05 per cent from the previous close on BSE.

Ranbaxy stock was up 1.81 per cent at Rs 834.35 per share.