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.
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.
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.