Drug company Sun Pharmaceutical has reportedly asked 18 top executives of Ranbaxy Labs to leave as part of integration with the former company, according to an ‘Economic Times’ report.
In April 2014, Sun Pharma had announced the acquisition of troubled rival Ranbaxy in an all-stock transaction worth $4 billion that includes $800 million debt.
Sun Pharma in March this year completed the merger of Ranbaxy with itself.
According to the ‘Economic Times’ report, those who have been asked to resign are Indrajit Banerjee, President and CFO; Yugal Sikri, country head (India) Ranbaxy; Maninder Singh, V-P marketing; Govind Jaju, global head, sourcing; Ratul Bahaduri, director-finance; among others.
News agency PTI reports: When asked to confirm a report of 18 top executives of Ranbaxy being asked to leave, a Sun Pharma spokesperson said: “If there are few employees who could not be positioned appropriately, the organisation will make all attempts to handle the same in a fair, transparent and sensitive manner.”
The spokesperson said the objective of Sun Pharma-Ranbaxy merger is to create a larger and better organisation for all its stakeholders.
“In order to make this happen, the company has made and will continue to make all efforts to utilise the total available talent in the most appropriate manner,” he added.
Sun Pharma spokesperson, however, did not comment on the total number of Ranbaxy employees to be affected by the restructuring post the merger.
In March this year, Sun Pharma completed the merger of Ranbaxy with itself and it resulted in duplication of positions as the two companies have similar business models and market presence.
Sun Pharmaceutical Industries posted a consolidated net profit of Rs 888.05 crore for the fourth quarter ended March 31, mainly due to Ranbaxy merger impact and price erosion in some products in the US.