Sun pharma- Ranbaxy Group Members:

Shweta Mahadik (110)

Surendra saroj (111)
Sushmitha Raikar (113)
Swapnil Rajwade (115)
Trinette Dmello (117)
Valen Miranda (119)
INTRODUCTION

SunPharmaceuticals
SunPharmaceuticals was established in 1983 in Vapi with Five products to
analyze sickness.
It is an Indian Multinational Pharmaceutical Company headquatered in
Mumbai.
It manufactures and sells pharmaceutical formulations primarily in India and
the United States.
It is the largest chronic prescription company in India and a market leader in
psychiatry, neurology, cardiology.
The market share of the company before the acquistion was 5.37% and sales
Rs 4,035 cr. in 2014.
 RANBAXY
Ranbaxy is an Indian multinational pharmaceutical company that was
incorporated in india in 1961.
In 1973 a Japanese pharmaceutical company Daiichi Sankyo acquired a
controlling share in 2008.
It is an integrated, research based, international pharmaceutical company
producing a wide range of quality, affordable generic medicines, trusted by
healthcare professionals and patients across geographies.
It has been incurring a net loss and suffering a decline in net worth since
2011.
The market share of the company before the acquistion was 3.84% and sales
Rs 2,886 cr. in 2014.
Motive behind Sun Pharma & Ranbaxy
Merger
Ranbaxy has got lot of ANDAs (Abbreviated New Drug Application)

Their main problem was to find an API plant.

If Sun Pharma fills this gap, Ranbaxy can begin its export to the USA.

Sun Pharmas managing director- Dilip Shanghvi has a reputation for turning around
companies in trouble by acquiring them at a good price.
Combination of Sun Pharma and Ranbaxy:
Indias Largest Pharma Company

Market Share Last 12 Months of Branded Generic Sales in India as of February 2014 ($ in mn)

Sun + Ranbaxy 9.2% $1,116

1. Abbott 6.5% $783

2. Sun 5.4% $651

3. eipla 5.0% $604

4. eadila 4.4% $538

5. Ranbaxy 3.8% $465

6. GSK 3.7% $447

7. Mankind 3.6% $431

8. Alkem + eachet + Indchemie 3.5% $423

9. Lupin 3.3% $406

10. Pfizer 3.0% $354

Source: AWAeS through February 2014.

ereating the World's 5th Largest Specialty Generic eo - Sun Pharma - Ranbaxy Merger 10
 Leadership In Prescription Share
Number 1 Position with 13 Class of Specialist Doctors*
Sun Pharma Current Ranking Combined Entity Ranking
Specialist [Oct 13] Specialist [Oct 13]
Psychiatrists 1 Psychiatrists 1
Neurologists 1 Neurologists 1
eardiologists 1 eardiologists 1
Orthopaedic 1 Orthopaedic 1
Ophthalmologists 1 Ophthalmologists 1
Gastroenterologists 1 Gastroenterologists 1
Nephrologists 1 Nephrologists 1
Diabetologists 2 Diabetologists 1
Physicians 5 Physicians 1
Improved
Gynaecologists 7 Rankings Dermatologists 1
Dermatologists 7 due to Urologists 1
Oncologists 7 merger ehest Physicians 1
Urologists 12 General Surgeons 1

*Ranks based on prescription

share
Source: SMSRe Pvt. Ltd.
ereating the World's 5th Largest Specialty Generic eo - Sun Pharma - Ranbaxy Merger 11
Advantages

The merger will see Sun Pharmas revenue jump by a healthy 40% but its
operating profit will rise by a meagre 7.5%, based on pro forma 2013
financials. Its operating profit margin will decline from 44.1% to 29.2%.
In terms of size, Sun Pharma will now have a pro forma 2013 revenue
of Rs.25,911 crore and an operating profit of Rs.7,577 crore, with a net profit
of Rs.1,710 crore.
Deal structure

Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share for each
Ranbaxy share they own.
Regulatory Aspects:

Competition commission of India (CCI).

Approvals.

2nd stage enquiry/investigation.

CCIs Approval.
Post acquisition integration plan:

Company plans to increase:

R and D.

Expand OTC brands.

Post Acquistion Position
Share Price Sun Pharma
Share Prices of Ranbaxy

Date Share Price Volume

31st March 2014 365.05 487117
01st April 2014 370.70 337894
02nd April 2014 404.10 231367
03rd April 2014 424.80 1584663
04th April 2014 459.55 2280999
7th April 2014 445.20 849227
Future plans & Activities after merger

Daiichi Sankyo Co. Ltd(25th march 2015=501.50)

Take over of Taro
Split of its R&D Department( Rs 1 Share)
Concentration more toward USA
Plans to Acquire Oral & Injectable Business
Share price Of Sun Pharma today