Back To: Home : Featured Technology : Flow Cytometry

CLICK HERE FOR WHAT'S NEW IN:
 

Sun Pharmaceutical to take Taro Pharmaceutical private for $571 million
08-13-2012
by Jeffrey Bouley  |  Email the author
EDIT CONNECT

SHARING OPTIONS:

MUMBAI, India—Sun Pharmaceutical Industries Ltd. has announced that it will merge with Hawthorne, N.Y.-based Taro Pharmaceutical Industries Ltd. and take the company private in deal worth roughly $571 million. Sun, which currently owns 66 percent of the company and all of its founders' shares, giving Sun 77.5 percent of the voting rights, had previously offered $24.50 per share but sealed the current deal by raising that offer to $39.50 per share.  
 
When the merger is completed, Taro will become a private company merged with Sun Pharmaceutical affiliates and will be delisted from the New York Stock Exchange.  
 
Founded in 1950 by Israeli pharmacists and American physicians, the company's name is taken from the Hebrew words for pharmaceutical industry and has become since then a multinational, science-based pharmaceutical company "dedicated to meeting the needs of its customers through the discovery, development, manufacturing and marketing of the highest quality healthcare products." The company has a manufacturing plant in Haifa, Israel.  
 
The history between Sun and Taro is a rocky one, with Sun Pharmaceuticals having acquired control of the company after a contentious legal battle with Taro's previous controlling shareholders in 2010. With the current merger deal, Sun Pharmaceuticals has indicated that it will not close the Haifa plant, nor transfer operations to India, and that it wants to invest in Israel. Some have questioned this commitment, as Sun had also said in the past that it would not take Taro private, but now plans to do just that.  
 
Taro's recent first-quarter financial results showed revenue gains of 42.6 percent to $159.2 million from $111.6 million in the same quarter the previous year. Cash flow from operations fell to $19.2 million in that same quarter from the previous Q1's level of $33.3 million, and it increased its research and development spending by 47 percent to $11.5 million.  
 
Sun, for it's part, is an international speciality pharma company with a large presence in the United States and India but also a footprint across more than 40 other markets. The U.S. market is Sun's biggest one, where it has built what it characterizes as "a strong  pipeline of generics." According to Sun, merging Taro into its operations adds a strong dermatology range to this portfolio.  
 
 
 
Code: E08131201

Back

PAGE UTILITIES


CONTACT US
DDNEWS
Published by Old River Publications LLC
19035 Old Detroit Road
Rocky River, OH USA 44116
Ph: 440-331-6600  |  Fax: 440-331-7563
 
© Copyright 2018 Old River Publications LLC. All righs reserved.  |  Web site managed and designed by OffWhite.