21 Apr 2015
Daiichi to exit Sun Pharma
Japanese drugmaker Daiichi Sankyo is close to exiting India, ending a bitter 7-year run that saw it face regulatory challenges in several countries because of its ownership of Ranbaxy Laboratories, which it had bought from the Delhi-based Singh family in 2008.
Daiichi is planning to sell the nearly 9% stake it currently holds in Indian pharma major Sun Pharmaceuticals, worth about Rs 22,300 crore (about $3.6 billion). If completed successfully, this will be the largest block deal in Indian history.
Earlier this month, Sun Pharma announced the close of its buyout of Ranbaxy in a stock-swap deal which resulted into Daiichi holding 8.9% in India’s largest drugmaker by sales.
The closure of the deal will mean a cash loss of at least $600 million for Daiichi over seven years. In 2008, Daiichi bought over the promoters’ stake in Ranbaxy for $4.2 billion while now it is set to get about $3.6 billion by selling its stake in Sun Pharma.