(ii) Diverse Product Portfolio: 18
A combined firm has a diverse, highly complementary portfolio of specialty and generic products marketed globally. This way, Sun Pharma got access to Ranbaxy’s new product pipeline including generic versions of many products. (iii) Tax Benefits - To Ranbaxy i.e. Amalgamating Company: By virtue of section 47(vi) of Income-tax Act 1961, transfer of a capital asset by Ranbaxy (amalgamating company) to Sun Pharma (amalgamated company) was not treated as a transfer as all the conditions were satisfied: i)This deal was treated as amalgamation as per section 2(1B) and ii) Sun Pharma (Amalgamated company) is an Indian Company Therefore, Ranbaxy was not liable for Capital Gain Tax on the transfer of its assets to Sun Pharma. - To Sun Pharma: Out of Minimum Alternative Tax(MAT) credit of Rs. 8222.7 million which had been written down by Ranbaxy during the quarter ended 2014, an amount of Rs. 7517 million has been recognized by the company, on a reassessment by the management at the year-end, based on the convincing evidence that the combined entity would pay normal income tax during the specified period and would be able to utilize the MAT credit so recognized 19
References: 1) Investor presentation 2019 %20February%202019.pdf 2) Investor presentation 2015 %20Sept%202015%20(USD).pdf 3) Capital Line 4) EBSCO - 834ae77733a3%40pdc-v- sessmgr04&bquery=sun+pharmaceuticals&bdata=JmRiPWJ1aCZkYj1id2gmdHlwZT0wJnN lYXJjaE1vZGU9U3RhbmRhcmQmc2l0ZT1laG9zdC1saXZl 5) %20Medical%20Products/PMP %20NEW/PDFs/778886_India_Pharma_2020_Propelling_Access_and_Acceptance_Realisin g_True_Potential.ashx 6) Sun Pharma Acquires Ranbaxy: Post Merger Blues- ResearchGate; Postmerger_Blues 7) “Painful integration: Sun Pharma sees profit hit as it sets the record straight at Ranbaxy units”, F. Business, July 21, 2015. - pharma-sees-profit-hit-sets-records-right-ranbaxyunits-2353660.htmlaccessed on December 15, 2015 5) %20Report.pdf 6) Adapted data from Financial public disclosures of Sun Pharma ( ) 7) - 03/news/66178641_1_ranbaxylaboratories-sun-pharma-abc-consultantsaccessed 20
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- Fall '19
- Generic drug, Sun Pharmaceutical Industries Ltd