Sun Pharma To Acquire Remaining Stake in Taro for About USD 348 Million | India Pharma Outlook

Sun Pharma To Acquire Remaining Stake in Taro for About USD 348 Million

India Pharma Outlook Team | Thursday, 18 January 2024

 India Pharma Outlook Team

Sun Pharmaceutical Industries Limited of India has announced that it will purchase all of Taro Pharmaceutical Industries' outstanding shares for $43 per share in cash, effectively assuming complete control of the company.

Pharma's offer amounts to about $347.8 million, with the per share value at a 4.2 per cent premium to Taro's close, as per reuters.

In May, the Indian drugmaker, which presently controls approximately 78.5 percent of Taro, offered to buy the company's remaining shares for $38 each.

The agreement marks the end of nearly 17 years of negotiations to obtain full control of the US-listed generic manufacturer, which conducts the majority of its business in the United States and Canada.

The merger, which is scheduled to be completed in the first part of the year, would result in Taro being a privately held corporation and being delisted from the New York Stock Exchange, according to the companies.

In November, the US authorities rejected charges against a former Taro executive suspected of conspiring to rig generic medicine pricing between 2013 and 2015.

Taro agreed to pay more than $200 million in July 2020 to resolve criminal price-fixing accusations, as part of the Justice Department's wide assault on alleged generic medication pricing violations.

Sun Pharmaceutical Industries Limited is an Indian multinational pharmaceutical firm located in Mumbai that develops and sells pharmaceutical formulations and active pharmaceutical ingredients in over 100 countries worldwide.

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