Daiichi Sankyo becomes majority partner of Ranbaxy

Daiichi Sankyo has announced that it has become a major partner of Indian generic pharmaceutical firm Ranbaxy Laboratories.

The companies have entered into a binding share purchase and share subscription agreement, with Daiichi Sankyo acquiring the entire shareholding of the Sigh Family and will seek to acquire the majority of the voting capital in the firm.

In total, the value of the transaction is expected to be at between $3.4 billion (1.7 billion pounds) and $4.6 billion, which puts the full value of Ranbaxy at $8.5 billion.

Following the closing of the deal, Mr Malvinder Singh will continue to serve as managing director and chief executive officer of the company while also taking on the position of chairman.

Daiichi Sankyo reports that this deal marks a complementary business combination that will offer global reach covering both mature and emerging markets while harnessing strong growth potential and cost competitiveness.

Takashi Shoda, president and chief executive officer of Daiichi Sankyo, said: “The proposed transaction is in line with our goal to be a global pharma innovator and provides the opportunity to complement our strong presence in innovation with a new, strong presence in the fast growing business of non-proprietary pharmaceuticals.”

He added that the collaboration provides a perfect strategic fit, while the company will respect the autonomy of Ranbaxy as a standalone firm.

In December 2006, Daiichi Sankyo announced a restructuring of its group as a simplified merger in accordance with Japanese companies law.