Sun Pharmaceuticals

Sun to Taro: Too late to call off merger

Thu, 29 May 2008 06:59:55 -0400

It's too late to stop now, according the Sun Pharmaceuticals. Yesterday, Taro Pharmaceuticals said it was backing out of a planned merger with Sun because the move was not in the best interest of its shareholders. Taro seems to have a problem with the $10.25 per share offer Sun made for the company.

But Sun has no intention of letting Taro go quietly. The company said that stipulations in the merger agreement prevent Taro from pulling out of the deal. In a letter to Taro's board, Sun's Chairman Dilip Shanghvi didn't mince any words, saying that the company is skeptical of the turn-around that led to Taro's decision to call off the merger. "Taro has only $47 million in cash as of March 31, 2008. This means that, if not for Sun's cash injections of approx $60 million last year, Taro would have virtually negative cash--hardly the 'dramatic' improvement of which Taro has boasted. While Sun has made every effort to fulfill its obligations under the Merger Agreement, Taro has failed to honor its side of the bargain and take all necessary action to consummate the merger. Further, Taro has ignored our attempts to discuss, and put forward to Taro's shareholders, an increase in the merger consideration in order to complete the transaction."

Sun says it will now consider all of its options, including without limitation commencing legal proceedings as to Taro's right to terminate the merger.

- see Sun's release
- here's Shanghvi letter to Taro's board (.pdf)

Related Articles:
Sun, Taro merger called off

ALSO NOTED: Medicines Company gets not approvable letter; Sun, Taro merger called off; and much more...

Wed, 28 May 2008 06:59:50 -0400

> The Medicines Company got a not approvable letter on an sNDA for an additional dosing regimen for Angiomax, a treatment of acute coronary syndromes initiated in the emergency department. Release

> A planned merger between Sun Pharmaceuticals and Taro Pharmaceuticals has been canceled. Taro's board decided that it wasn't in the best interest of the company. Taro release

> NeoStem execs say they don't know why the company's stock has declined over the last four days. NeoStem release

> New research has highlighted a brain protein called DARPP-32 which bolsters the well-documented dopamine response. It could alter long-lasting responses to drugs of abuse, and decreases motivation for food reward. Report

> Networking tools like Facebook and Twitter will soon be de rigeur for pharma marketing, replacing blogs as the must-use online tools. Report

> New U.K. guidelines for heart-attack prevention could be a major windfall for statin-makers. Report

> Say hello to Pfizer's new general counsel, Amy Schulman (photo), a top litigator who's served as lead attorney on the company's Celebrex and Bextra cases. Report

And Finally... Here's a quandary: You're a good-sized drugmaker, but not a behemoth able to throw your weight around the industry's big trade associations. So how do you get your voice heard in our nation's capital? Form your own association, of course. Report

India eyes R&D opportunities

Thu, 17 Apr 2008 06:59:55 -0400

India-based drugs have made a name for themselves as makers of copycat drugs. When a developer's lucrative drug goes off-patent, Indian companies are guaranteed to swoop in and make a less-expensive knock-off of the therapy. It's a strategy that's definitly paid off for the developers.

But now some of these companies are shifting gears and developing their own drugs from scratch. Why now? Mainly because the talent pool in India has improved to the point where drugmakers have the resources to do their own R&D. "In the past, anyone interested in fundamental research had to go to the West, but the talent is here and now the barrier is broken," says Ian Cliffe, a senior executive at Ranbaxy. Another factor is India's new patent protection laws, which were a condition of its acceptance into the World Trade Organization.

Ranbaxy recently announced plans to spin off its R&D unit. Sun Pharma, Orchid Research, Wockhardt, Glenmark Pharmaceuticals and Nicholas Piramal all have plans to do the same. India is betting its lower costs and talent pool will give it a leg up in the global pharmaceutical market in the coming years.

- read the Financial Times article for more

Related Articles:
Ranbaxy spins off R&D unit. Ranbaxy report
Ranbaxy touts R&D abilities in new discovery pact. Ranbaxy report
Glenmark to spin off generics business. Glenmark report