Sun Pharmaceutical Industries' Executive Chairman Dilip Shanghvi described the USD 11.75 billion acquisition of US-based Organon & Co as both a "happy" and "bit anxious" moment, acknowledging the significant debt required to fund the large transaction.
Based on a writ petition filed by some individual investors, the High Court while ordering the status quo on Friday, issued notices to SEBI, BSE, NSE, Sun Pharma, Ranbaxy, Daichii Sankyo and Silver Street Developers.
The deal had separately come under scanner of the market regulator Sebi for alleged insider trading violations and the present 'no-objection' from the exchanges.
Sun Pharma's offer was tempting because Ranbaxy was too busy fighting fires in the US to concentrate on operations.
Regulator likely to probe possible violation of insider-trading norms.
Nearly 150 senior management staff will be asked to leave.
The group is looking into a new role for Ranbaxy CEO and MD Arun Sawhney.
Sun Pharma open to large acquisitions post Ranbaxy.
Shares of Ranbaxy Lab and Sun Pharma on Tuesday gained as much as 4 per cent after the drug-makers got CCI's approval for their long-pending $4-billion merger.
It hopes to turn around Ranbaxy within four years of closing the deal by improving efficiency and resolving all regulatory issues
Ranbaxy was asked to sell all products containing Leuprorelin which are marketed and supplied under brand name Eligard.
The merger has fortified Sun Pharma's position.
Last week, the court had vacated the status quo order it had issued earlier on the merger process between Sun Pharma and Ranbaxy.
Ranbaxy drugs sold in the United States will be gradually rebranded as Sun Pharma treatments
Two individuals filed the petition in the high court of Andhra Pradesh
Ranbaxy's troubled plants in India could see a turnaround as Sun Pharma has experience in doing so.
After a detailed scrutiny, fair trade watchdog CCI has suggested Sun Pharma and Ranbaxy to make certain changes in their proposed $4 billion merger deal, including possible divestment of some brands, to address anti-competitive concerns.
Industry must take strong collective action to protect the reputation it enjoys in global markets, says Kiran Mazumdar Shaw.
Last month, the high court had ordered an interim status quo on the $4-billion deal, after a suit from some individual investors alleged insider trading in Ranbaxy's shares by Silverstreet Developers, Sun's wholly owned arm, before the deal was announced on April 6.
Based on a petition filed by two individual investors, the court on April 25, issued interim 'status quo' orders on the merger process.
The recalled drugs were manufactured and distributed in the US by Ohm Laboratories.
The Ranbaxy experience has made multinational corporations more cautious about Indian acquisitions in general
A source said the competition watchdog would by next month suggest 'structural remedies' that included selling key drug segments as conditions for clearing the country's largest pharmaceutical industry merger.
The proposed acquisition is expected to close by the end of 2014, subject to approvals from Indian Courts and the anti-trust body in India and the US
Sun Pharmaceutical Industries reported a 34 per cent year-on-year (Y-o-Y) jump in net profit to Rs 2,654.6 crore in Q4FY24.
Both companies can now complete the deal.
One of the suitors says that Ranbaxy's Indian portfolio alone is worth $2 billion, or approximately Rs 11,900 crore.
The Supreme Court has asked the Andhra Pradesh High Court to take a decision within two days on a plea challenging merger of Sun Pharmaceutical with Ranbaxy.
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According to information available on the European Commission website, Ranbaxy Laboratories has been fined euro 10.32 million (over Rs 80 crore).
Almost a year after announcing a $4 billion deal, Sun Pharmaceutical Industries on Tuesday said merger of Ranbaxy with itself has been 'consummated.'
Sun Pharmaceutical's acquisition of Ranbaxy has received final approvals.
Sun-Ranbaxy are keen to complete the merger process.
On January 31, the US Federal Trade Commission cleared the merger.
While Watson is a near comparable to Ranbaxy in terms of the generics business in the US, on margins and capital efficiency front, Ranbaxy is way ahead of Watson.
Silverstreet Developers LLP, which had no holding in Ranbaxy at the end of September 2013, had bought shares of the Gurgaon-based firm aggregating 1.41 per cent stake by end of December 2013. As on March 31, 2014, its holding stood at 1.64 per cent.
Sun Pharmaceutical Industries Ltd Chairman Dilip Shanghvi said he expects Ranbaxy Laboratories Ltd to become profitable in the short term.
Under terms of the agreed deal, Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share for each Ranbaxy share they own.
Torrent to buy Ranbaxy's anti-bacterial generic
Pharma company Ranbaxy Laboratories has entered into a long-term drug discovery and development agreement with the US-based pharma company Merck in the area of anti-infective medicines. Ranbaxy could earn over $100 million on each drug developed through the collaborative research programme. The agreement, announced on Monday, calls for joint research to develop clinically validated anti-bacterial and anti-fungal drug candidates.
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