Sun Pharmaceutical Industries, a Rs.16,000 crore pharma major, has completed the merger of Ranbaxy Laboratories, a Rs.13,000 crore plus MNC, today and begins the integration of Ranbaxy's business. The integration, planned by Sun Pharma over many months, will focus on supporting strong growth. The merger has fortified Sun Pharma's position as the world's fifth largest specialty generic pharmaceutical company and the top ranking Indian pharma company with significant lead in market share.

Dilip Shanghvi, managing director, Sun Pharma, said, “It is an important milestone in the history of Sun Pharma as we enter into a new phase of growth. We will continue to focus on gaining trust of the regulators globally while continuing to develop products based on patient needs and leverage them to become brand leaders globally.”

Sun Pharma and Ranbaxy's joint functional teams put together the integration blueprint with direction from Integration Management Office (IMO). The IMO will continue to oversee the implementation of the functional integration process. The integration will emphasize on productivity enhancement, aligning best functional requirements and employee talents in the combined entity.

It has formalized an operational blueprint for realizing its US$ 250 million synergy target for next three years through significant value creation across functions. The combined entity comprises best intellectual capital, capability of nearly 1,800 scientists and the ability to invest significantly in R&D and it will continue developing innovative and complex generics that boast of technical differentiators.

Sun Pharma's foundation with a strong & multi-cultural team of over 30,000 people representing over 50 global cultures. Remediation at manufacturing units which are currently in deviation from cGMP norms will remain a critical focus. Sun Pharma is working with global consultants assisting its internal teams to achieve compliance objectives.

Sun Pharma scrip moved up by Rs.9.75 to Rs.1029.60 in the afternoon session today on BSE and Ranbaxy scrip went up by Rs.9.55 to Rs.829.10. Both scrips touched to yearly high on March 19, 2015 at Rs.1074.05 and Rs.844 respectively on BSE. Following the closure of merger transaction, Ranbaxy will be delisted from Indian Stock Exchanges. Ranabxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy. On proforma basis for 12 months ended December 2014, Sun Pharma's gross margin stands at 76 per cent, EBDITA margin at 32 per cent and net margin at 20 per cent.

Post merger, Daiichi Sankyo becomes the second largest shareholder in Sun Pharma and both companies will work together to leverage this relationship for global business growth.

The combined entity's manufacturing footprint covers 5 continents with products sold in over 150 nations with a stronger presence in US, India, Asia, Europe, South Africa, CIS and Russia and Latin America. The combination allows Sun Pharma to significantly expand its R&D capabilities and global presence, especially across emerging markets, enhance product portfolio and market depth in India, US as well as RoW markets and improve strategic flexibility, ability to pursue partnerships and strengthen M&A bandwidth.

Israel Makov, chairman, Sun Pharma said, “The combined entity will capitalize on the expanded global footprint and enhance our dominance as a world leader in the specialty generics landscape. Sun remains committed to uncompromised product quality, 100 per cent compliance and promote innovation to create the most dynamic global specialty generics pharmaceutical company. We believe that our shareholders, customers and employees will share our excitement in the potential of this combination and thank them for their continued support.