Following the merger of Ranbaxy with itself, Sun Pharma said it intends to focus on boosting productivity as it looks to realise synergies to the tune of $250 million over three years.
Dilip Shanghvi, managing director of Sun Pharma, said he wants to enhance the research and development (R&D) productivity at Ranbaxy and Sun Pharma to focus on new generic and differentiated drugs for global markets.
“We would be looking to increase our investment in R&D in excess of $300 million. As we continue to grow our business, we aim to invest 6-7% of the turnover on R&D,” Shanghvi said.
As part of the value-creation process, Sun hopes to augment its presence in segments like active pharmaceutical ingredients (APIs), consumer health business and dermatology, while also accelerating growth in emerging markets and US.
“Post-integration, we will get significant presence in the global consumer health business and the idea is to use this into creating a business which then we wish to accelerate, so it becomes a growth engine for the company,” Shanghvi said.
Shanghvi stressed the importance of achieving 100% compliance with good manufacturing practices.
Ranbaxy to delist upon integration
Sun Pharmaceutical on Wednesday said Ranbaxy will be delisted from Indian bourses following the completion of the $4-billion merger. “Following the closure of this transaction, Ranbaxy will be delisted from the Indian Stock Exchanges. Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy,” Sun Pharma said in filing to the BSE.