22, February, 2024
HomeBusinessSun Pharma Set to Acquire Full Control of Taro Pharma in $347.8 Million Deal

Sun Pharma Set to Acquire Full Control of Taro Pharma in $347.8 Million Deal

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Sun Pharmaceutical Industries Limited, a prominent player in the Indian pharmaceutical sector, has unveiled plans to acquire the remaining stake in Taro Pharmaceutical Industries, signaling a strategic move towards complete ownership of its subsidiary.

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The announcement, made on January 17, outlines Sun Pharma’s intention to purchase all outstanding shares of Taro at a cash price of $43 per share.

This acquisition, valued at approximately $347.8 million according to Reuters calculations, represents a 4.2% premium to Taro’s closing share price on the preceding January 17. Sun Pharma, already holding a 78.5% stake in Taro, initially proposed the purchase of the remaining stake at $38 per share back in May.

After nearly 17 years of negotiations and discussions, this deal symbolizes the culmination of Sun Pharma’s efforts to attain full ownership of the U.S.-listed generic drug manufacturer, primarily active in the United States and Canada.

Upon the successful completion of the merger, expected in the first half of the year, Taro will undergo a transition into a privately held entity, leading to its delisting from the New York Stock Exchange, as jointly stated by the involved companies.

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It’s worth noting that in November, the U.S. government dropped charges against a former Taro executive accused of conspiring to manipulate generic drug prices between 2013 and 2015. Furthermore, in July 2020, Taro agreed to a settlement exceeding $200 million to resolve criminal allegations related to price-fixing, amid a broader Justice Department crackdown on perceived pricing misconduct in the generic drug market.

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