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Daiichi completes takeover of Ranbaxy Labs

Daiichi completes takeover of Ranbaxy Labs
AP
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First Published: Fri, Nov 07 2008. 01 22 PM IST
Updated: Fri, Nov 07 2008. 01 22 PM IST
Mumbai: Japan’s Daiichi Sankyo Co. has completed its acquisition of Ranbaxy Laboratories Ltd., India’s largest pharmaceutical company, the companies said Friday.
Daiichi Sankyo Co. agreed to pay more than $4 billion for a controlling stake in Ranbaxy in June, and the transfer of 63.92% of Ranbaxy’s equity shares to Daiichi was completed Friday, the companies said.
“We are pleased to announce that all the planned transactions of this landmark deal have been successfully completed. We are determined to work with Ranbaxy to realize sustainable growth,” Takashi Shoda, president and chief executive of Daiichi Sankyo, said in a statement.
Daiichi paid Rs737 ($15.42) per share, according to a Ranbaxy spokesman.
“This puts us well on the path to create a hybrid business model that will unlock the strengths of both companies to bring unprecedented value to all stakeholders,” said Malvinder Mohan Singh, Ranbaxy’s CEO.
In June, the purchase price represented a premium of 53.5% to Ranbaxy’s average daily closing price for the prior three months, but the stock has since tanked and was trading at Rs215 a share midday Friday on the Bombay Stock Exchange.
In September, the FDA banned the import of more than 30 of Ranbaxy’s generic drugs - including generic versions of the popular antibiotic Cipro and the cholesterol pill Zocor - over concerns about manufacturing standards at two of its India plants. Regulators in other countries were quick to follow with probes of their own.
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First Published: Fri, Nov 07 2008. 01 22 PM IST