Sun Pharmaceuticals on Wednesday said it has acquired a controlling stake in Israeli pharma major Taro Pharmaceuticals.
OnSeptember 8, Sun Pharma had got a favourable ruling from the IsraeliSupreme Court in its takeover battle for Taro, following which it hadoffered to buy 4.8 million shares of the promoters of Taro, the Levittfamily, at a price of $7.75 per share, translating into a totalconsideration of $37 million.
The Indian drug-maker'ssubsidiaries have now increased their economic interest in Taro to 48.7per cent and their voting rights to 65.8 per cent, Sun Pharma said in afiling to the Bombay Stock Exchange.
Prior to the acquisition, Sun Pharma had a 36 per cent stake in the Israeli drug firm.
The Levitt family has a 12 per cent stake in the firm.
SunPharma had struck a $454-million merger deal with Taro in 2007, whichwas unilaterally terminated by the Israeli firm in 2008.
After this, both companies had filed various legal suits against each other.
SunPharma Chairman and Managing Director Dilip Shanghvi has been appointedas a chairman of Taro and Israeli agro-chemicals firm Makhteshim AganIndustries' former Chief Executive Officer will take over as a directorof the company.
"We intend to build on Taro's market presence inthe US, Israel and Canada and its expertise in dermatology andpediatrics, along with specialty and generic pharmaceuticals, andover-the-counter-products," Shanghvi said.
He further added: "Wehave tangible plans to significantly increase volume of production andapprove further investments in R&D in Israel and Canada, especiallyin delivery systems and complex chemistry."
Bolstered by theacquisition, shares of Sun Pharma were trading at Rs 1,968.65 on theBSE on Wednesday, up 1.96 per cent from the previous close.
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