Sun Pharmaceutical announced the completion of its merger with Ranbaxy Labs on Wednesday and said it has formalised an operational blueprint for realising $250-million synergy target for three years.
Sun Pharma said that the combined entity will expand R&D capabilities and global presence that can lead to a value accretion of $250 million over three years.
"The company is also looking at enhancing the product portfolio and increasing reach in domestic market as well as the US and the rest of the world," Sun Pharma founder and managing director Dilip Shanghvi told reporters in Mumbai.
"We have also formalised an operational blueprint for realising $250-million synergy target for three years through significant value creation across functions. The integration will cover all functions and markets globally," Shangvi added.
Sun Pharma chairman Israel Makov said, "The combined entity will capitalise on the expanded global footprint and enhance our dominance as a world leader in the speciality generics landscape."
The combined entity's manufacturing footprint covers five continents with products sold in over 150 nations with a stronger presence in the US, India, Asia, South Africa, CIS & Russia and Latin America. The new company will have large manufacturing footprint.
"The idea is to become a low-cost drugmaker," Shanghvi said. Following the closure of the transaction, Ranbaxy will be delisted and Ranbaxy shareholders will receive 0.8 Sun Pharma shares for every Ranbaxy share they hold.