Daiichi Sankyo sells Sun Pharma stake in block deals; stock plunges

MUMBAI: Shares of Sun Pharmaceuticals were under selling pressure and plunged as much as 10.63 per cent in intraday trade as Daiichi Sankyo offloaded its entire stake in the company through multiple block deals.

Daiichi Sankyo put 8.9 per cent stake, approximately 215 million shares on the block. Share sale is likely at a discount of 11 per cent to Sun Pharma’s previous closing price.

According to ET Now report, promoter Dilip Shangvi is likely to pick up part of the 9 per cent stake on offer.

Last year, Sun Pharma had agreed to buy Ranbaxy Laboratories for $3.2 billion from Daiichi Sankyo. As part of the deal, Daiichi Sankyo held 8.9 percent stake in the company.

The sale brings the curtains down on a harrowing chapter for the Japanese drugmaker which began when it purchased Ranbaxy in 2008. It suffered a series of jolts when the USFDA pulled up Ranbaxy for technical deficiencies and accused the firm of faking test results to obtain clearances for its products. Daiichi was forced to pay $500 million in settlement.

After stake sale, the existing business partnership with Sun Pharma will remain unchanged, Daiichi Sankyo said.

If Sun Pharma promoters are likely to buy majority of the stake on offer, said an analyst tracking the sector. If they do so, it will boost investor confidence in the stock.

Sun Pharma has fallen to lowest level since March 3 post Daiichi stake sale.

According to Abhishek Sharma, Pharma Analyst, IIFL, Sun Pharma is a good buying opportunity after sharp fall in stock price.