Ranbaxy's drive to become a research-based drug developer [1] and major manufacturer has led it straight into the welcoming arms of Japan's Daiichi Sankyo, which announced it is buying a majority stake in the Indian pharma company. After Sankyo completes a buyout of the founding Singh family's stake in the company, Ranbaxy will become a subsidiary operation. The deal is valued at $4.6 billion and will create a combined company worth about $30 billion.
That move positions Daiichi Sankyo to become a major supplier of low-priced generics to Japan's aging population and accelerates a trend by Japanese pharma companies to enter emerging Asian markets, where they see much of their future growth. The acquisition stunned investors and analysts alike, who were caught off guard by a bold move from a conservative player in the industry.
- check out this release [2] for more on the deal
- read the report [3] from The Times
Related Articles:
Daiichi aims for 60 percent growth [4]
Merck turns to Ranbaxy for $100M R&D effort
[5]Ranbaxy touts R&D abilities in new discovery pact [1]
Links:
[1] http://www.fiercebiotech.com/story/ranbaxy-touts-rd-abilities-in-new-discovery-pact/2007-02-07
[2] http://www.fiercebiotech.com/press-releases/ranbaxy-bring-daiichi-sankyo-company-limited-majority-partner
[3] http://business.timesonline.co.uk/tol/business/industry_sectors/health/article4111039.ece
[4] http://www.fiercepharma.com/story/daiichi-aims-60-percent-growth/2007-10-02?utm_medium=rss&utm_source=pharma_Daiichi%20Sankyo&cmp-id=OTC-RSS-FP
[5] http://www.fiercebiotech.com/story/merck-turns-to-ranbaxy-for-100m-rd-effort/2008-05-12