Sun Pharma to acquire Ranbaxy creating 5th largest generics firm

Generics and biosimilars Initiative

Building trust in cost-effective treatments

Inscribirse
eng / esp

Sun Pharma to acquire Ranbaxy creating 5th largest generics firm

INICIO/Noticias Farmacéuticas | Posted 18/04/2014 0 Post your comment

India-based Sun Pharmaceutical (Sun Pharma) announced on 6 April 2014 that the company had agreed to acquire rival generics maker Ranbaxy Laboratories (Ranbaxy) in an all-stock deal worth US$3.2 billion.

The combination will create India’s largest pharmaceutical company and the world’s fifth largest generics maker, with combined sales estimated at US$4.2 billion. The combined entity will have 47 manufacturing facilities across five continents, along with a strong portfolio of specialty and generic drug products marketed globally, including 629 abbreviated new drug applications (ANDAs).

The deal comes at a time when Ranbaxy, which is majority-owned by Japan’s Daiichi Sankyo, is under increased scrutiny by the US Food and Drug Administration (FDA). In January 2014, FDA banned Ranbaxy from exporting drugs to the US from its Toansa plant, which manufactures around 70–75% of Ranbaxy’s active pharmaceutical ingredients, after an inspection highlighted violations of the Food Drug and Cosmetic (FD&C) Act and related Acts. The company’s other India-based factories at Paonta Sahib, Dewas and Mohali are already banned from exporting drugs to the US [1]. Exports from the Dewas and Toansa plants to Europe have also been suspended, due to non-compliance with Good Manufacturing Practice (GMP). But this is not the end of Ranbaxy’s troubles. The company has also been subject to recalls, with its Jacksonville plant in the US recalling 64,626 bottles of atorvastatin tablets in March 2014 after a pharmacist discovered a 20 mg tablet in a bottle that was supposed to contain 10 mg doses [2].

Not surprisingly, Sun Pharma is reported to be planning to gradually re-brand Ranbaxy drugs sold in the US as Sun Pharma treatments, although the brand is likely to continue to be present in other markets.

The agreement still needs shareholder and regulatory approvals, but Sun Pharma expects the takeover to be completed by the end of 2014.

Related articles

Ranbaxy restarts generic atorvastatin production

Ranbaxy recalls generic atorvastatin in US

References
1. GaBI Online - Generics and Biosimilars Initiative. FDA issues Ranbaxy with Form 483 for violations at Toansa plant [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Apr 18]. Available from: www.gabionline.net/Generics/News/FDA-issues-Ranbaxy-with-Form-483-for-violations-at-Toansa-plant
2. GaBI Online - Generics and Biosimilars Initiative. Indian generics makers face US recalls [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Apr 18]. Available from: www.gabionline.net/Generics/News/Indian-generics-makers-face-US-recalls

Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Source: Economic Times India, FDA, Ranbaxy, Reuters, Sun Pharma