Sun Pharma - Ranbaxy Ppt 1 50241p

Sun pharma- Ranbaxy

Group :

Shweta Mahadik (110)

Surendra saroj (111) Sushmitha Raikar (113) Swapnil Rajwade (115) Trinette D’mello (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.

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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 ANDA’s (Abbreviated New Drug Application)



Their main problem was to find an API plant.

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



Sun Pharma’s 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:

India’s 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. Abbott

6.5%

2. Sun

5.4%

3. eipla

5.0%

4. eadila

4.4%

5. Ranbaxy

3.8%

6. GSK

3.7%

7. Mankind

3.6%

$431

8. Alkem + eachet + Indchemie 3.5%

$423

9. Lupin

3.3%

10. Pfizer

3.0%

$1,116 $783 $651 $604 $538 $465 $447

$406 $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

Gynaecologists

7

Dermatologists

1

Dermatologists

7

Urologists

1

Oncologists

7

ehest Physicians

1

Urologists

12

General Surgeons

1

Improved Rankings due to merger

*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 Pharma’s 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 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.



CCI’s 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

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Share price Of Sun Pharma today