Troubled Indian pharmaceutical company, Ranbaxy, is being acquired by another Indian drug company, Sun Pharmaceuticals, for $3.2 billion, the two companies announced this week.
Ranbaxy has faced its difficulties in recent years. The United States, concerned that the drug company was selling unsafe drugs in the country, banned imports from four of Ranbaxy’s factories and fined the company $500 million.
While some may wonder why Sun Pharma would want to take on a company with such a troubled reputation, The Economist reported that with the purchase of Ranbaxy, Sun Pharma finds itself in the position of nearly doubling its sales (to $4.3 billion), increasing its global reach, and becoming the largest drug maker in India and the largest Indian drug maker in the United States.
In an interview with New Delhi Television, Sun Pharma chairman, Israel Makov, said after the sale is completed, the company’s initial focus will be to resolve Ranbaxy’s issues and that he and Sun Pharma leaders are confident that the issues that have troubled Ranbaxy will soon be resolved and behind them.
Ranbaxy’s owner, Japanese drug maker, Daiichi-Sankyo, announced in a press release Friday that the transaction is expected to close by the end of December.