Home / Business / Money / Sun-Ranbaxy’s $4bn merger deal gets USFTC’s conditional nod

Sun-Ranbaxy’s $4bn merger deal gets USFTC’s conditional nod

Approval subject to divestment of one antibiotic product to avoid anticompetitive impact in the US mkt

The US Federal Trade Commission has approved Sun Pharmaceutical ‘s plan to buy  Ranbaxy on the condition that it divests one antibiotic product – generic minocycline tablets – to avoid anti-competitive impact in the US market. Torrent Pharma  will acquire Ranbaxy’s minocycline business in the US.

Generic minocycline tablets are used to treat a wide array of bacterial infections, including pneumonia, acne, and urinary tract infections.

According to the FTC’s complaint, the proposed merger would likely harm future competition by reducing the number of suppliers in the US markets for three dosage strengths (50 mg, 75 mg, and 100 mg) of generic minocycline tablets.

Ranbaxy is currently one of three suppliers of the products, while Sun is one of only a limited number of firms likely to sell generic minocycline tablets in the United States in the near future. Sun’s entry likely would have resulted in significantly lower prices for these drugs.

Sun-Ranbaxy is currently also in the process of divesting seven brands in India as per the CCI order.

The Sun-Ranbaxy merger now needs approval from just the Punjab and Haryana High Court. The court will be hearing on the merger on February 2.

Sun Pharma had agreed to buy Ranbaxy from Japan’s Daiichi Sankyo in April.

Sun Pharma stock price

On January 30, 2015, Sun Pharmaceutical Industries closed at Rs 915.95, down Rs 3.25, or 0.35 percent. The 52-week high of the share was Rs 939.05 and the 52-week low was Rs 552.50.

The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company was 25.61.


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...