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SUN PHARMA AND RANBAXY MERGERAbstract Sun Pharmaceutical Industries Ltd is the world’s 5thlargest genetic pharmaceutical companyafter buying Ranbaxy Laboratories from Japan’s Daiichi Sankyo Co. ltd worth $3.2 Billion inApril 2014. Mr. Dilip Shangvi who is the founder of Sun Pharmaceuticals is planning to realizedsynergies through the merger, however, he is facing many challenges in controlling Ranbaxy partof the merged part. The managing director has to find solutions of the challenges being faced andhas to ensure the growth of the merged part. About Sun PharmaSun Pharmaceutical Industries Ltd was set up in 1983 by Dilip Shanghvi, found in Mumbai andis India’s largest generic pharmaceutical company. As it is a multinational pharmaceuticalcompany, the company manufactures and sells a large basket of medicines over 150 countries.Over 72% of Sun Pharma sales are from other countries, mainly in US. Today, Sun pharma is awell-known company as it is the second largest pharmaceutical company by its marketcapitalization on the Indian exchanges and it was also listed on the stock exchange in 1994. Moreover, Sun Pharma had 13 acquisitions between 1997 and 2012. First of all, in 1997, it madea purchase of Detroit- based Caraco Pharmaceutical Laboratories and two other Indian pharmafirms namely Tamilnadu Dadha and MJ Pharmaceuticals Ltd. In 2010, Sun Pharma bought amajority stake in Israel-based Taro Pharmaceutical Industries, which had doubled the revenue inUS from $484 million to $1.1 billion and within two years, it also acquired two morepharmaceutical industries in US. The company has a record of 20 successful acquisitions.
About RanbaxyRanbaxy laboratories ltd was an Indian Pharmaceutical company which was set up in 1961 and isfound in Gurgaon. Ranbaxy was a research based and international pharmaceutical companyproducing a wide range of affordable and quality of medicines across many countries. Ranbaxyremained an entity until April 2014. Ranbaxy’s focus on Research and Development has causedin several approvals in markets because of which Novel Drug and Delivery Systems andtechnologies developed its own labs.Furthermore, Ranbaxy is a member of Daiichi Sankyo Group which is a leading global pharmainnovator found in Japan and holds almost 63.4% stake of the Ranbaxy. The laboratory wentpublic in February 1973 and was acquired by Daiichi Sankyo in 2008.
Sun Pharmaceutical’s Acquisition of RanbaxySun Pharma acquired 100% of Ranbaxy Laboratories in April 2014 for $4 billion in order tocreate World's fifth largest specialty generic pharma company. Under terms of the agreed deal,