Sun Pharma Case Study

FORE SCHOOL OF MANAGEMENT

Strategies Behind Acquisitions

Sun Pharma-Ranbaxy, Thomas Cook-Sterling and Reliance-Network18

Submitted to: Muqbil Burhan

Submitted by: Group 8

Group members

Astitva Tyagi 08314

Janak Maheshwari 08322

Karan Agarwal 08323

Madhav Goel 08326

Monal Jain 08331

Praneet Mehta 08335

SUN PHARMA AND RANBAXY

Sun Pharmaceutical Industries Limited (“Sun Pharma”) and Ranbaxy Laboratories Limited (“Ranbaxy”) on April 6, 2014 released a press statement announcing that they had entered into definitive documents under which Sun Pharma would acquire 100 percent of Ranbaxy. The combined entity was the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. The scale of operations

Sun Pharma

Indian origin is a specialty pharmaceutical company established in 1983 with the first research center set up in 1991. Went public in 1994 and is currently listen on both BSE and NSE. In 30 years of its existence, Sun Pharma has become one of the world’s most profitable pharmaceuticals manufacturers. Sun Pharma has complemented its growth by way of extensive acquisitions and joint ventures in India and abroad.

b. Ranbaxy

Established in 1961, it is an Indian company listed on BSE, NSE and Luxembourg stock exchange with ground operations in 43 countries and 21 manufacturing facilities spread across 8 countries. It is engaged in development, manufacture and marketing of pharmaceutical products and APIs. Ranbaxy has also engaged in acquisitions to further its growth objectives.

c. Daiichi

Daiichi is a global pharmaceutical company with corporate origin in Japan. In 2008, Daiichi acquired a controlling stake in Ranbaxy. However, the value of Daiichi’s investments has halved over the years, as Ranbaxy has not been able to ensure compliance of its factories supplying to the US.

Facts about the deal

Merging company

B. Entry into new markets

Through the Transaction, along with the emerging markets, Sun Pharma will also gain entry into Japan, a market with high growth potential and low penetration of generic drugs.

C. Diversified and highly complementary product portfolio

A combined Sun Pharma and Ranbaxy will have a diverse, highly complementary portfolio of specialty and generic products marketed globally, including 445 ANDAs. Additionally, the combination will create one of the leading dermatology platforms in the United States. Sun Pharma will also get access to Ranbaxy’s new product pipeline.

THOMAS COOK AND