Ranbaxy in kitty, Sun Pharma to focus on R&D, global reach

Mumbai, Mar 25 (PTI) Sun Pharmaceutical, which today concluded the buyout of Ranbaxy Labs, said the combined entity will expand R&D capabilities and global presence that can lead to a value accretion of USD 250 million over three years.

"The merger of Sun Pharma and Ranbaxy will create a USD 4.5-billion entity. We will expand our R&D capabilities to introduce new innovative products and expand our global presence, especially across the emerging markets," Sun Pharma founder and managing director Dilip Shanghvi told reporters. The company is also looking at enhancing the product portfolio and increasing reach in domestic market as well as, the US and the rest of the world, Shanghvi said, adding that it will pursue partnerships and strengthen the M&A bandwidth.

"We have also formalised an operational blueprint for realising USD 250 million synergy target for three years through significant value creation across functions.

The integration will cover all functions and markets globally," he added. "The combined entity will capitalise on the expanded global footprint and enhance our dominance as a world leader in the speciality generics landscape," Sun Pharma chairman Israel Makov said. The combined entity's manufacturing footprint covers five continents with products sold in over 150 nations with a stronger presence in the US, India, Asia, South Africa, CIS & Russia and Latin America.

"The new company will have large manufacturing footprint. Currently, Ranbaxy outsources around 40 per cent of its products, which will be stopped completely shortly. The idea is to become a low-cost drug maker," Shanghvi said. PTI