Sun Pharma-Ranbaxy deal gets CCI nod with riders

The Competition Commission of India (CCI) approved the $4-billion Sun Pharma and Ranbaxy merger on Monday with the rider that the two pharma companies will have to divest seven key products to address monopoly concerns.

The fair trade watchdog has ordered Ranbaxy to dispose of six products and Sun to divest one and will appoint a monitoring committee to oversee compliance to the stipulated conditions.

The deal was announced in April and will create the country's biggest drug company. This was the first case which the CCI subjected to public scrutiny as it had found the deal 'prima facie' in violation of the competition laws.

In its order dated on December 5 and made public on Monday, the CCI said that 'it approves the proposed combination ... subject to the parties carrying out the modification to the proposed combination".

The CCI has directed Sun Pharma to divest all products containing 'Tamsulosin + Tolterodine, which are marketed and supplied under the Tamlet brand name.

Ranbaxy would be required to divest all products containing Leuprorelin, which are marketed and supplied under the Eligard brand name.

Ranbaxy would also have to divest products such as Terlibax, Rosuvas EZ, Olanex F, Raciper L and Triolvance.