FTC clears Sun Pharma's $4B purchase of competitor Ranbaxy

Sun Pharmaceuticals will sell the rights to one generic drug as part of its purchase of competitor Ranbaxy Laboratories, U.S. antitrust regulators said Friday.

The Federal Trade Commission said the companies will sell Ranbaxy's interests in generic minocycline, an antibiotic used to treat several types of infections. The FTC said only three companies supply the drug in the U.S. right now, and Sun was planning to launch its own version, which would have reduced prices. Torrent Pharmaceuticals, an India-based company, will buy the Ranbaxy business.

Sun agreed to buy Ranbaxy in April for $4 billion, and combined the companies are expected to be India's largest drug . They will have about $4.2 billion in annual revenue.

Ranbaxy, which is owned by Japanese drugmaker Daiichi Sankyo, is the largest generic drugmaker in India and has 47 factories in 65 countries spread across five continents. However it has struggled with regulatory trouble and the U.S. has banned imports of drugs from two of its factories because of concerns.

© 2015 The Associated Press. All rights reserved.

Citation: FTC clears Sun Pharma's $4B purchase of competitor Ranbaxy (2015, January 30) retrieved 19 March 2024 from https://medicalxpress.com/news/2015-01-ftc-sun-pharma-4b-competitor.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

India's drugmaker Ranbaxy swings into quarterly net loss

4 shares

Feedback to editors