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Ranbaxy stock rises on Pfizer rumour

Ranbaxy stock rises on Pfizer rumour
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First Published: Fri, Jun 13 2008. 11 24 PM IST
Updated: Fri, Jun 13 2008. 11 24 PM IST
Mumbai: India’s biggest drug maker, Ranbaxy Laboratories Ltd’s shares reached a three-year high following a Business Standard report that Pfizer Inc. may make a hostile bid, trumping an agreed takeover by Daiichi Sankyo Co.
Ranbaxy advanced as much as 5.6% and Pfizer’s India unit gained 17.4% intra-day. Daiichi fell 2.4% in Tokyo.
Pfizer, the world’s largest drug maker, may offer to buy the 65% of Ranbaxy not held by the founding Singh family, the BS said on Friday. Pfizer and Daiichi declined to comment. Daiichi Sankyo agreed to pay as much as $4.6 billion (Rs19,780 crore) for 50.1% of Ranbaxy to enter the generic drug market where sales are growing twice as fast as branded medicines.
Any bid may have to beat the Rs737 that Daiichi is offering, a 29% premium to Gurgaon-based Ranbaxy’s Rs572 price. A battle for Ranbaxy may bolster its stock that has lagged the benchmark BSE Sensex for the past three years.
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First Published: Fri, Jun 13 2008. 11 24 PM IST
More Topics: Ranbaxy | Pfizer | Drugs | India | Money Matters |