Sun Pharma to buy Ranbaxy in $3.2 bn deal: Highlights

Sun Pharmaceutical Industries said that it will buy generic drug maker Ranbaxy Laboratories, has hit regulatory snags in its key US market over quality issues, in an all-share deal with total equity value of $3.2 billion.

Here are the highlights of the Sun-Ranbaxy deal:

SUN - RANBAXY MERGER

Sun Pharma to acquire Ranbaxy for $4 bn

Sun Pharma will acquire Ranbaxy in all stock transaction

Ranbaxy shareholders will receive 0.8 shares of Sun Pharma

Deal values Ranbaxy at Rs 457 per share

Combined entity will be the 5th largest generics co in the world

Transaction value impels a revenue multiple of 2.2 on Dec revenues

Daiichi will become second largest shareholder in Sun Pharma

Daiichi will hold 9% in merged entity, will have one board member

Transaction will close by December 2014 post all approvals



MERGED ENTITY

5th Largest Generic company in the world with ops in 65 countries Largest pharma company in India with 47 manufacturing facilities

Merged entity will have 629 ANDA filings Combined revenues at $4.2 bn, EBITDA of $1.2 bn

HOW WILL MERGER BENEFIT

One of largest manufacturing set up for Indian company

Sun Pharma has strong presence in US markets

Ranbaxy has strong presence in EM and RoW markets

Sun Pharma strong on Chronic side, Ranbaxy on Acute side in India

Ranbaxy has limited competition products - Diovan, Nexium and Valcyte

Synergies for SPARC due to marketing strength

Daiichi likely to continue to market Ranbaxy products

Two companies with high revenues will merge

FINANCIAL POSITIONS

Ranbaxy has debt of around $1.5 bn including derivatives

Sun Pharma has cash of over $300 mn, Taro has $500 mn