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Sun Pharma to acquire Ranbaxy in a deal worth $4 billion

BY Michael Johnsen

MUMBAI, India — Sun Pharma on Sunday announced it will acquire 100% of Ranbaxy in an all-stock transaction valued at $4 billion. 

The combination of Sun Pharma and Ranbaxy creates the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India, Sun Pharma stated. The combined entity will have operations in 65 countries, 47 manufacturing facilities across five continents, and a significant platform of specialty and generic products marketed globally, including 629 abbreviated new drug applications. 

“Ranbaxy has a significant presence in the Indian pharma market and in the U.S. where it offers a broad portfolio of ANDAs and first-to-file opportunities," stated Dilip Shanghvi, Sun Pharma managing director. "In high-growth emerging markets, it provides a strong platform which is highly complementary to Sun Pharma’s strengths."

On a pro forma basis, the combined entity’s revenues are estimated at $4.2 billion for the 12 months ended Dec. 31, 2013. 

Under these agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy. This exchange ratio represents a premium of 18% to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3% to Ranbaxy’s 60-day volume-weighted average share price, in each case, as of the close of business on April 4, 2014. 

The proposed transaction has been unanimously approved by the boards of directors of Sun Pharma, Ranbaxy and Ranbaxy’s controlling shareholder, Daiichi Sankyo. Ranbaxy’s board and Sun Pharma’s board have recommended approval of the transaction to their respective shareholders.

The transaction is expected to represent a tax-free exchange to Ranbaxy shareholders, who are expected to own approximately 14% of the combined company on a pro forma basis. Upon closing, Daiichi Sankyo will become a significant shareholder of Sun Pharma and will have the right to nominate one director to Sun Pharma’s board of directors.

Ranbaxy has recently received a subpoena from the United States Attorney for the District of New Jersey requesting that Ranbaxy produce certain documents relating to issues previously raised by the Food and Drug Administration with respect to Ranbaxy’s Toansa facility. In connection with the transaction, Daiichi Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the subpoena.

The transaction will need approval by majority in number representing 75% in value of the shares present and voting at the shareholder meetings of each of Sun Pharma and Ranbaxy. Both Daiichi Sankyo (which holds approximately 63.4% of the outstanding shares of Ranbaxy) and promoters of Sun Pharma (who hold approximately 63.7% of the outstanding shares thereof), have irrevocably agreed to vote in favor of the transaction.

Additionally, the closing of the transaction will be subject to customary closing conditions, including approval by the Indian Central Government, approval by the High Courts of Gujarat and Punjab and Haryana, approval by the Competition Commission of India and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act in the United States. Pending approvals, Sun Pharma anticipates that the transaction will close by the end of calendar year 2014.

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R.Cohen says:
Apr-09-2014 04:15 pm

Ranbaxy has a consistent history of poor quality control at some of it's Indian manufacturing facilities. Sun is betting that it can help Ranbaxy correct it's problems. As a Pharmacy Technician, I'm betting the quality control issues will persist.

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Rite Aid taps omnichannel veteran to fill new role of SVP brand development and innovation

BY Michael Johnsen

CAMP HILL, Pa. — Rite Aid on Monday announced that David Abelman, a retail veteran with more than 25 years’ experience, is joining the company as SVP brand development and innovation. His appointment is effective immediately.

In this newly created position, Abelman will be responsible for overseeing the continued development of Rite Aid brand products as well as identifying and implementing new innovations to enhance and grow Rite Aid’s business. He will report to Ken Martindale, Rite Aid’s president and COO.

“David is a seasoned retail professional who brings broad-based marketing, merchandising and entrepreneurial experience to Rite Aid,” Martindale said. “His proven ability and experience will be a valuable asset to the company as an integral member of the management team focused on delivering the best products, service and care to meet our customers’ unique health and wellness needs.”

Most recently, Abelman was the CEO and co-founder of Self-Health Nation, a health and wellness omnichannel startup focused on providing nutritional advice and solutions. Prior to that position, he was EVP and chief merchandising and marketing officer for A.C. Moore Arts & Crafts. He has also held senior-level marketing and merchandising positions with Michaels Stores, Office Depot and Daymon Worldwide.

 

 

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Rockin’ Green announces new detergent

BY Ryan Chavis

SAN ANTONIO, Texas — Rockin’ Green, a supplier of eco-friendly cleaning products, announced the introduction of a new non-toxic Auto Dish detergent, available in a 16-oz. package. The detergent will be available in more than 60 Buy Buy Baby locations.

The new addition to the Rockin’ Green lineup to eliminate frustration in the dishwashing process, the company said, and can supply up to 30 loads per bag.

The detergent also is sold online for $12.95 at RockinGreenSoap.com

 

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