Sun Pharmaceutical Industries Ltd ended its agreement to takeover Israeli unit Taro Pharmaceutical Industries Ltd.
The companies decided that ending the deal was in the best interest of their shareholders, Sun Pharma and Taro said in a joint filing.
Sun Pharma had last offered $39.50 per share, or about $571 million, for the one-third stake it did not already own in Taro, seemingly winning over the Israeli company's board following a long battle to gain full control of the U.S. listed drugmaker.
Taro shares closed at $50.55 on Thursday on the New York Stock Exchange.
Sun Pharma shares closed at 746.10 rupees on Friday on the National Stock Exchange.