Sun Pharmaceutical Industries Limited of India announced its intention to acquire all outstanding shares of Taro Pharmaceutical Industries at a price of $43 per share in cash, the company announced on January 17. This move signifies Sun Pharma’s bid to gain complete control over its subsidiary, according to a report by Reuters.
The offer from Sun Pharma totals approximately $347.8 million, according to Reuters calculations, and represents a 4.2% premium to Taro’s closing share price on the preceding January 17. Sun Pharma, which presently holds a 78.5% stake in Taro, had initially proposed to purchase the remaining stake at $38 per share in May.
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After almost 17 years of negotiations and discussions, this deal marks the conclusion of Sun Pharma’s efforts to secure full ownership of the U.S.-listed generic drug manufacturer, predominantly operating in the United States and Canada.
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Upon the successful completion of the merger, anticipated in the first half of the year, Taro will transition into a privately held entity and will be delisted from the New York Stock Exchange, as stated by the involved companies.
Notably, in November, the US government dropped charges against a former Taro executive accused of conspiring to manipulate generic drug prices between 2013 and 2015. In July 2020, Taro had agreed to pay over $200 million to settle criminal allegations related to price-fixing, amidst a broader Justice Department crackdown on purported pricing misconduct in the generic drug market.
(With Inputs from Reuters)
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Published: 18 Jan 2024, 06:56 AM IST