An INR202.3 million ($3.2 million) offer for a 28% stake in India's Zenotech Laboratories by Sun Pharmaceutical Industries is "fair and reasonable," according to a special committee named by the target company to evaluate the proposed transaction.
When you're targeting an under-the-radar malady that hasn't traditionally been treated with prescription drugs, it's up to marketers to get the word out and deliver on sales. And that's why AstraZeneca and Daiichi Sankyo, whose Movantik launched earlier this year, are bringing a 6-time Olympic medalist on board to talk about opioid-induced constipation (OIC).
Think Daiichi Sankyo set itself free of Ranbaxy Laboratories when it sold its stock in Sun Pharmaceuticals Industries? Think again. It remains possibly liable until 2022 for another $325 million as the Ranbaxy mess is cleaned up in the United States.
It would appear that Sun Pharmaceuticals founder, Managing Director and CEO Dilip Shanghvi was not the buyer of Daiichi Sankyo's one-swoop sale of its 8.9% stake in the company it received for selling Ranbaxy Laboratories.
In a regulatory filing, Japan's Daiichi Sankyo said that its board has agreed to it selling some or all of its shares in Sun Pharmaceutical, which Reuters reports are now worth about $3.6 billion. No reason was given, the news service said, but its experience with Ranbaxy, which was recently acquired by Sun, has been nonstop issues.
Daiichi Sankyo has had enough of trying to make money in the Indian generic drug industry. The Japanese drugmaker, which faces patent cliff issues, is selling off its stake in Sun Pharmaceutical just weeks after it closed on the all-stock deal selling Ranbaxy Laboratories to Sun for $3.2 billion.
With what for most of them is a new fiscal year, drug companies in Asia rolled out a series of deals and other actions, among them a submerger of a sort, a buyout, a research agreement and a housecleaning.
In one of its first acts as India's new leading drugmaker, Sun Pharmaceuticals announced the beginning of the end of Ranbaxy Laboratories by removing the company from the stock markets after trading has ended on April 1.
Times have been tough for Daiichi Sankyo, and they're about to get tougher for some of the Japanese company's U.S. staffers. The drugmaker is cutting its headquarters staff by 16% on Monday, with more layoffs expected in mid-April.
AstraZeneca has decided not to go it alone on marketing Movantik. Daiichi Sankyo has signed on to help launch the constipation pill--and it's paying a pretty penny for the opportunity.