Sun Pharma to delist Ranbaxy from bourses on completion of USD 4-bn merger

Sun Pharmaceutical Industries on Wednesday said Ranbaxy will be delisted from the domestic stock exchanges following the completion of the US $4 billion merger of the two drug firms.

"Following the closure of this transaction, Ranbaxy will be delisted from the Indian Stock Exchanges. Ranbaxy shareholders will receive 0.8 shares of Sun Pharma for each share of Ranbaxy," Sun Pharma said in filing to the Bombay Stock Exchange (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 a significant lead in market share," the drug major 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 manufacturing footprint of the combined entity 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, Sun Pharma 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 US Food and Drug Administration (FDA), US authorities and health regulators in the European markets.

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

Sun Pharma said three key priority levers to drive growth in the combined entity had been identified, which 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.

After the merger closed, shares of Sun Pharma were trading 2.05 per cent higher, at Rs 1,061.20 per scrip, in the afternoon trade on the BSE. Ranbaxy's stock was up 1.81 per cent at Rs 834.35 per share.