The Indian pharmaceutical industry is the second-fastest growing industry sector in the country. It has shown a revenue growth of 27.32 per cent (as per the latest data available) to touch Rs 25,196.48 crore (Rs 251.96 billion) in 2006-07. The industry also saw Indian drug companies buying out many small firms the world over as they expand their reach, markets and muscle.
So when, Japanese drug firm Daiichi Sankyo on June 11 announced the acquisition of a majority stake of more than 50 per cent in domestic major Ranbaxy for over Rs 15,000 crore (Rs 150 billion), marking the largest ever deal in Indian pharma industry, it stunned the industry.
Ranbaxy is India's largest pharmaceutical company with a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales. The deal will create the 15th biggest drugmaker globally.
Daiichi would also make an open offer for an additional 20 per cent stake in Ranbaxy at a price of Rs 737 per share. This deal values Ranbaxy at about $8.5 billion. Malvinder Singh will continue as CEO and MD of the Ranbaxy, post deal too.
Click here to find out what this deal means for the investor, the company and the buyer; and also to find out which are the other top 9 pharma companies in India?
Text: Rediff Business Desk
Image: Malvinder Singh, CEO and MD, Ranbaxy, and Takashi Shoda, president and CEO, Daiichi Sankyo Company Ltd after signing the strategic deal. | Photograph, courtesy: Ranbaxy
Singhs sell out entire stake in Ranbaxy to Daiichi