INDIA – Sun Pharma has signed a definitive agreement to acquire a controlling stake in Taro Pharmaceutical Industries, an Israeli research-based pharmaceutical manufacturer, in a US$$300 million buyout deal.
The Board of Directors of Sun Pharma has selected Aalok Shanghvi as a whole-time director for a term of five years beginning June 1, 2023.
What’s more, the Board of Directors has named Rolf Hoffmann as an Independent Director for a five-year term.
According to the company’s statement, Sun Pharma plans to buy out all of Taro Pharmaceutical Industries’ shares, adding 21.5% to the 78.5% stake it already owns.
This buyout deal, valued at US$38 per ordinary share, will benefit the company and all of its shareholders while providing a compelling liquidity opportunity for the company’s shareholders.
In an exchange filing, the drugmaker said: “Sun Pharma and its affiliates’ shares are not included in the proposed transaction. After the transaction is complete, Sun Pharma will own all of Taro’s business.”
India’s largest drugmaker will be required to establish a wholly owned subsidiary or special-purpose entity that will engage in a merger agreement with Taro as per the proposed agreement.
Through a million reverse triangular merger, Sun Pharma will have full control of Taro’s expertise in dermatology, pediatrics, specialty and generic pharmaceuticals, and over-the-counter products.
“Taro will become a fully owned subsidiary of Sun Pharma and will be de-listed from the New York Stock Exchange upon completion of the acquisition,” underlined India’s largest drugmaker by revenue.
The Mumbai-based company will have complete autonomy to utilize Taro’s current assets valued at US$1.3 billion.
With this new acquisition, Sun Pharma aims to emerge as a preferred development and commercial partner in Dermatology and Ophthalmology therapies worldwide.
This proposed transaction comes days after Sun Pharma reported a 29.6% rise in fourth-quarter profit buoyed by a strong ramp-up in its specialty portfolio in the United States and global markets.
The pharma major returns to profit amid strong growth in the domestic formulation business and emerging markets sales besides its overall specialty sales.
Following a new licensing agreement, Sun Pharma is set to begin commercialization of Philogen’s specialty product, Nidlegy, across the territories of Europe, Australia, and New Zealand.
Nidlegy, currently in Phase III clinical trials, is a new anti-cancer biopharmaceutical that is being developed by Philogen for the treatment of melanoma and non-melanoma skin cancers.
This partnership will deepen Sun Pharma’s presence in the onco-dermatology space in line with its goal to provide patient solutions across a broad spectrum of skin cancers in various disease stages.
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