Sun Pharma Case Study Solution

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The case is about drug major Sun Pharma, wanted to acquire USbased Insite vision eyecare firm to strengthen its ophthalmic segment portfolio. As it was the key segment to make strong presence in US. Insite vision has developed Durasite & Durasite 2, this drug is capable to extend drug retention duration. Based on this technology Insite vision’s team has developed a drug which will BromSite for treatment of inflammation and prevention of pain associated with cataract surgery. For the 6-month period ended June, InSite Vision recorded revenues of USD 3.8 million, an EBITDA loss of USD 6.4 million and a net loss of USD 7.5 million.[2] Sun pharma also wanted to acquire GSK’s(GlaxoSmithKline ) two plant which was operating in opiate (a drug derived…show more content…
competition commission of India said that this acquisition may kill the competition, as Sun pharma may form a monopoly. competition commission of India asked to Sun Pharma to sell some of asset. Company:- After acquiring Ranbaxy from Diichi Sankyo , in 2014 Sun Pharma became largest Pharma company in India, the largest Indian pharma company in the US, and the 5th largest generic company globally. Firstly they have merged with Daiichi Sankyo, later Daiichi Sankyo have sold its 8.9 % stake in $3.2 billion deal, Daiichi Sankyo occurred a loss of $1. Billion, in 2008 as it had acquired Ranbaxy in $4.2 billion deal[5]. But overall Daiichi Sankyo was able to pull out some profit here because of value of yen has changed. In 2008, it was 90 per dollar when Daiichi made the investment in Ranbaxy, when Daiichi has sold Ranbaxy to Sun Pharma it was 120 per dollar.[3] In Sep 2015, Sun Pharma sold Ranbaxy’s two unit to Stride’s arcolab, which was operating in Central Nervous System segment in a 165cr. deal. In sep2015, Sun Pharma Acquired InSite Vision US-Based drug manufacture in USD 48 million. Sun pharma has acquired GSK’s(GlaxoSmithKline) two plat…show more content…
In addition the share price raised by 3% after this deal .Sun pharma had also acquired Insite Vision after this Share price of Sun Pharma registered a hike of 3%.[4] PAGE 3 Conclusion: - All the time it is not the same scenario, if a company is selling some of its businesses to others that doesn’t means company is not able to make profit out of it. In this case as we have seen that Sun Pharma has seen a good opportunity to strengthen its active pharmaceutical ingredients, which could help them to establish strong foot print in US market. A market from Sun Pharma’s 50 % revenue comes but still 5 other company holding 60 % share in that market. Acquisition of GlaxoSmithKline was able to provide some sort of opportunity to Sun Pharma, but COMPETION COMMISSION OF INDIA came up with some condition, according to those condition Sun Pharma had to sold some of its asset to other company. Sun pharma had evaluated its each and every business portfolio, and based on that evaluation they have decided to sell Central Nervous System business. At the time of Ranbaxy’s acquisition Sun Pharma has done the same, it had sold seven

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