Sun Pharmaceutical buys Taro Pharma shares from Brandes

20 Feb 2008

Sun Pharmaceutical Industries Ltd has announced having acquired an additional 9.4-per cent stake in the Israeli firm Taro Pharmaceutical Industries Ltd, a Pink Sheets multinational generic manufacturer acquired by Sun last year.

In May 2007 Sun Pharmaceuticals, together with its subsidiaries, had signed a definitive agreement to acquire Taro Pharmaceutical Industries Ltd in a $454-million all-cash deal, financed through internal accruals and its earlier $350-million foreign currency convertible bond issue (See: Sun Pharmaceutical to acquire Taro Pharma for $454 million).

Taro's major therapeutic segments include cardiovascular, neuropsychiatry and anti-inflammatory segments, areas where Sun also has expertise, and provides the Indian company an expanded product portfolio in the US market, which lat year contributed about 90 per cent of Taro's sales.

The additional 9.4-per cent shares, acquired by Sun Pharma's indirect subsidiary, Alkaloida Chemical Company Exclusive Group Ltd, increases the stake of Sun Pharma and its subsidiaries in Taro Pharma to 34.4 per cent.

The seller was private equity firm Brandes Investment Partners, LP.