After Ranbaxy acquisition, Sun Pharma set to own Pharmalucence of US
16 Jul 2014
Shares of Sun Pharmaceutical Industries Ltd, India's largest pharmaceutical company by market capitalisation, touched an all-time high of Rs753 on the Bombay Stock Exchange this morning after its subsidiary acquired US-based Pharmalucence Inc, a manufacturer of human injectable pharmaceuticals..
FDA-approved Pharmalucence is an employee-owned enterprise formerly operating as CIS-US, Inc. It was created through a management buy-out of CIS-US by three long-term employees in 2007.
Today, it provides contract and private label formulation development and manufacturing services of parenteral products in either liquid or lyophilized form.
"Pharmalucence has sterile injectable capacity in the US, supported by strong R&D capabilities," says the company in its filing with the exchange.
It is the second acquisition by Sun Pharma this year after it made a landmark deal by buying out Ranbaxy Laboratories Ltd for $3.2 billion in April (See: Sun Pharma, Ranbaxy to merge in Rs24,000 all-stock deal).
The acquisition is likely to create the world's fifth-largest specialty generic pharmaceutical company, according to Sun. It aims to complete the buyout by December-end.
The total acquisition value of Ranbaxy is $4 billion, including debt of $800 million. However, the deal is still stuck in regulatory hurdles.