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 Introduction
M India·s largest pharmaceutical company.
MIncorporated in 1961
M
   is currently Ranbaxy CEO and Managing
Director
Mxresent Chairman- à



MExports its products to 
countries
M!round operations in ë countries
MManufacturing facilities in countries.
M0
!urgaon, 0aryana.
0istory
„ Started by Ranbir Singh and !urbax Singh
in 1937.
„ In 1998, Ranbaxy entered the United
States market
„ Japanese company Daiichi Sankyo gained
majority control in 2008.
uinancials
„ 2008- !lobal Sales of US $ 1,682 Million
„ !rowth of 4%.
„ North America, the Company's largest
market contributed sales of US $ 449
Million
„ India clocking sales of around US $ 300
Million
„ Market share in India is 5%
Major Setback
„ December 2005, Ranbaxy's shares hit
hard by a patent ruling disallowing
production of its own version of xfizer·s
drug Lipitor.
„ September 2008, the uDA issued two
Warning Letters to Ranbaxy and an
Import Alert for generic drugs produced
by two manufacturing plants in India.
xroduct portfolio
„ Anti-Infectives
„ Cardiovascular
„ Diabetes
„ Dermatological
„ Neuro-xsychiatry
„ xain management
„ !astro-Intestinal
„ Nutritional
„ A strong player in the Ñàà segment.
„ áiological formulations such as Verorab
(Rabies Vaccine) and Vaxigrip (ulu Vaccine),
Major Alliances / Collaborations
„ Drug Discovery & Clinical Development ²
!laxoSmithKline
„ (Anti-infective and Respiratory Segments)
„ Drug Discovery Clinical Development ²
Merck
„ Statin molecule out licensed to xxD, USA
  

„ Japan based pharmaceutical company.

„ Established in 2005 - merger of 

 

 
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„ 0ead Office ² Tokyo

„ Leading company in the field of cardiovascular drugs.

„ Workforce - 29,272 people (as of September 30,2009)

Capital - 50 billion yen

„ U.S. subsidiary, Daiichi Sankyo, Inc. (DSI)

„ European subsidiary, Daiichi Sankyo Europe !mb0 (DSE)

 0 
„ 
 
„ Established in 1913

„ à
  




„ Established in 1918

„     
- DAIIC0I SANKYO COMxANY, LIMITED

„  ²
„ Started operation of à
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à

„ Started operations of à
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„ Started operations of à
 
 
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„   - started operations as the newly formed DAIIC0I

SANKYO !roup
 

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„ à (

  

à ) - top research and
development decision-making body.

„ Research focusing on the six areas of cardiovascular

diseases, glucose metabolic disorders, infectious
diseases, cancer, immunity and allergies, and bones/joint
diseases.

„ Core Development Areas
Thrombosis, Diabetes,

Malignant Neoplasm, and Autoimmune Diseases

„ uranchise areas
0ypertension, áacterial Infections, and

0yperlipidemia / Atherosclerosis
 

„ 
 
„ áenicar (olmesartan medoxomil)
„ Mevalotin (pravastatin)
„ Loxonin (loxoprofen)
„ Olmetec (olmesartan)
„ Captopril
„ Zantac (ranitidine)
„ WelChol (colesevelam 0Cl)
„ Effient (xrasugrel)
„ à
  




„ Cravit (levofloxacin)
„ Evoxac (cevimeline)
„ uloxinOtic (ofloxacin)
„ !racevit® (sitafloxacin, only sold in Japan)
 W0AT IS MER!ER

o Merger is defined as fusion of two or more existing

companies.

o One survives and the others lose their corporate

existence.

o The survivor acquires all the assets as well as liabilities

of the merged company or companies.
 W0AT IS
AC UISITION/TAKEOVER
o An acquisition is the purchase of a company by another
one by controlling its share capital.

o A ¶takeover· is acquisition and both the terms are used

interchangeably.

a) xurchase of shares in open market.

b) Takeover offer to the general body of shareholders.
c) Acquisition of share capital through cash, issuance of
loan capital, or insurance of share capital.
d) Major shareholders commanding majority of voting
power
o An acquisition may be friendly or hostile

o Time taken in completion of transaction is

less in takeover than in mergers.

o Offeror company decides about the

maximum price.

o Acquisition usually refers to a purchase of a

smaller firm by a larger one.
RANáAXY-DAIIC0I SANKYO

T0E DEAL
T0E DEAL
„ xrovide Stronger xlatform for Drug
Development, Manufacturing & !lobal
Reach
„ Aim to be Research based International
xharmaceutical Company.
T0E DEAL
„ 34.8% stake worth 10,000 crores($2.4
billion)
„ At Rs 737 per share
„ Daiichi will pick up another 9.4% through
xreferential Allotment
„ Open offer of 20% to Shareholders of
Ranbaxy
T0E DEAL
„ On June 11 2008, Daiichi Sankyo acquired
a 34.8% stake in Ranbaxy
„ valued at $2.4 billion.
„ In November 2008, Daiichi-Sankyo
completed the takeover of the company
from the founding Singh family in a deal
worth $4.6 billion by acquiring a 63.92%
stake in Ranbaxy.
T0E DEAL
„ Mr. Singh plans to Invest his $2.4 billion
in

„ uinancial Services & 0ospitals
„ Religare
„ uortis
W0Y RANáAXY DID IT ?
„ A very ´ intelligentµ deal

„ 0ad held share for 50 years

„ áut the Ranbaxy growth curve had peaked

2006 ² 16% growth
2007 ² 7% growth
2009- 9% growth forecast

„ áusiness model was struggling with high litigation costs and devaluation
of the rupee against the USD

„ US strategy was looking in the face of more expensive litigation

„ Selling of entire stake at 30% premium

W0Y DAIC0I DID IT ?
„ Japan has an ageing population and they needed new market

„ There is growing recognition in Japan of the importance of generic

drugs

„ Japanese health Ministry is encouraging doctors to use generic

drugs to reduce the health budget

„ Acquisition of Ranbaxy gives Daiichi a low cost manufacturing base

in India

„ Daiichi will have a strong generics operations in India and

operations in 60 different countries

„ Daiichi moves from 22nd rank to 15th among world largest

pharmaceutical companies
EuuECTS ON x0ARMA
INDUSTRY
 T0E EuuECTS ON RANKIN!S
„ áefore Merger
o Ranbaxy 8th largest !eneric Drug Maker in the
World
o Daiichi Sankyo 25th Largest xharmaceuticle
Company in the World
„ After Merger
o Ranbaxy Daiichi 15th Largest xharmaceutical
Company
o Ranbaxy to be among the top five !eneric
Drug makers in the world
 The New Trend
„ RANáAXY a !enerics Maker

„ Daiichi
an Innovator

„ A Merger termed as the ´Ardhnarishwarµ

Model
 MARKET xENETRATION
„ Ranbaxy gets a support in the R&D
Sector where it lags
„ Daiichi forays in the !enerics sector with
India·s largest !enerics Manufacturer
„ xenetration of Ranbaxy in Japanese
market made easy and same for Daiichi in
India
uor Ranbaxy
„ Significant milestone in becoming a
research-based international
pharmaceutical company.
„ Ranbaxy will gain easier access to the
much-coveted Japanese market by
operating from within the Daiichi Sankyo
„ The immediate benefit for Ranbaxy is that
the deal frees up its debt and imparts
more flexibility into its growth plans.
uor Daiichi
„ Easier to enter the Indian market.
„ áigger goal - in securing a strong presence
in the global market for generics.
„ The acquisition will help Daiichi Sankyo to
jump from number 22 in the global
pharmaceutical sector to number 15.
„ The main benefit is Ranbaxy·s low-cost
manufacturing infrastructure and supply
chain strengths.
„ Will be able to reduce its reliance on only
branded drugs and margin risks in mature
markets.
„ áenefit from Ranbaxy·s strengths in generics to
introduce generic versions of patent expired
drugs, particularly in the Japanese market.
„ Additional NDAs from the US uDA on anti-
histaminics and anti-diabetics is an added
advantage.
uor the Joint Venture
„ A complementary business combination that provides
sustainable growth by diversification that spans the full
spectrum of the pharmaceutical business.
„ An expanded global reach that enables leading market
positions in both mature and emerging markets with
proprietary and non-proprietary products.
„ Strong growth potential by effectively managing
opportunities across the full pharmaceutical life-cycle.
„ Cost competitiveness by optimizing usage of R&D and
manufacturing facilities of both companies, especially in
India.
„ áoth companies acquire a broader
product base, therapeutic focus areas and
well distributed risks.
Effect of deal on India as whole
1) Loss of good influencing people from
pharma sector
2)Maximum use of available natural
resources and not rational use.
3) Use the Indian talent in good manner
at cheap rate.
4)Capture of rich Indian generic store.
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Impact of it on Daiichi
„ Daichii have to face competitor of Ranbaxy
„ Ranbaxy acquisition puts Daiichi Sankyo in red
„ xrice Daiichi paid for acquisition was quite high
compared to the present pricing of other Indian
generic drug making companies.
„ #



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„    has to appoint industry experts to
resolve issues related to the USuDA
Impact of it on Daiichi
„ à
 
  

The uDA's latest findings come less than a month
after Daiichi Sankyo reported a $3.7 billion loss in the
October-December quarter and warned that annual
earnings would swing to a loss. The Tokyo-based
company now expects a net loss of $3.2 billion this
fiscal year through March, instead of the previously
predicted $663 million gain, largely because of the yen's
recent strength and the Ranbaxy deal
' The currency hedges by Ranbaxy would cost the
Japanese drugmaker around $122 million this financial
year
Impact of it on Daiichi
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„ ´Daiichi Sankyo might have been deceived by Ranbaxyµ

by analyst uumiyoshi Sakai.
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 Effect on Indian xharmaceutical
Industry
„ Ranbaxy fell 3% on stock market because
of low acceptance and capital gains
„ 0ence, proving the deal to be
disadvantage to the industry
References
„ www.wikipedia.com
„ www.ranbaxy.com
„ www.medindia.com
„ www.daiichisankyo.com
„ www.fdanews.com
„ www.india-server.com
„ www.scribd.com
„ www.sify.com
T0ANK YOU