June 13 – At a time when Indian compnaies are snapping up international conglomerates worldwide, India's largest pharmaceutical company Ranbaxy was sold to Japanese drugmaker Daiichi Sankyo Co for an estimated US$4.6billion, the largest buy out of an Indian company till date.
The agreement allows Daiichi Sankyo to buy at least 50.1 percent of the Indian generic drug maker's voting rights through March 2009, the Japanese company said in a statement.
Adding Ranbaxy's network, Daiichi Sankyo can more than double its global reach from the current 21 countries to 56, the Japanese company said.
The deal also allows Daiichi Sankyo to expand its operation in generic drug production and sales to "adapt to rapidly-changing market needs." Ranbaxy is a major producer of generic drugs.
Sankyo said Ranbaxy will become a subsidiary when the deal is completed. Ranbaxy Chief Executive and Managing Director Malvinder Mohan Singh will remain his current post as Chairman and managing director.
The deal is also expected to bring in new drugs from Daiichi's portfolio into the Indian market, and tempt Indian pharma majors, particularly generic manufacturers hitting a plateau in overseas markets, to sell out and realise attractive valuations of the kind that Ranbaxy has secured, according to Busines week.
