Daiichi Sankyo today released its road map for the $3.2 all-stock Ranbaxy deal with Sun Pharmaceutical and the mile markers it sees to completion. It also provides some idea for drugmakers with products facing Ranbaxy generics of how quickly its revamp by Sun might put them in peril.
Mention Ranbaxy drugs to some wholesalers and U.S. doctors these days, and they will respond negatively. And so the Ranbaxy brand looks to be on its way out when Sun Pharmaceutical completes its $3.2 billion acquisition of Ranbaxy Laboratories later this year.
Daiichi Sankyo has found one way to deal with Ranbaxy Laboratories' persistent quality problems: Hand them off to somebody else to fix. That is what the Japanese drugmaker will do with an agreement to sell Ranbaxy to Sun Pharmaceutical in an all stock deal that will give Daiichi Sankyo a 9% stake in Sun.
Sun Pharmaceutical has been shopping for deals that would give it more exposure to the U.S. market, and now it has pulled off a stunner. The Indian drugmaker will pay $3.2 million to buy competitor Ranbaxy Laboratories, a company with serious issues but one with big potential in the world's largest market.
The seed strain is often to blame for low yields of vaccines to protect against pandemic flu strains H1N1 and H5N1, but Daiichi Sankyo has now encountered difficulties when processing the vaccine, leaving the drugmaker unable to hit the H5N1 vaccine production target it agreed upon with the Japanese government.
In an effort to get itself into a place where it can again ship from its FDA-approved plants in India, Ranbaxy Laboratories says it is taking a hard look at how it runs its API operations.
Japanese drugmaker Daiichi Sankyo, which owns controlling interest in the Indian generics company Ranbaxy Laboratories, is having to rethink its strategy now that Ranbaxy's key API plant has been banned from shipping to the U.S. and its analytics lab came in for harsh criticism from the FDA.
Japan's Daiichi Sankyo believed it was making a solid move when it bought controlling interest in Ranbaxy Laboratories for $4.6 billion in 2008. Instead it has seen its finances burdened by Ranbaxy's non-stop regulatory issues, leading some to wonder if Daiichi might get fed up and bail out. But executives today said they don't intend to do that, at least not for now. Instead Daiichi will take "drastic" steps to turn the operations around.
Massachusetts biotech ArQule has gotten word from its data monitoring committee that its Phase III trial of tivantinib is doing fine despite a dosing reduction that once threatened to derail its development, stoking hopes that the company can finally get its liver cancer treatment across the goal line and sending shares up nearly 30%.
Japan's Daiichi Sankyo, which has controlling ownership of India's troubled Ranbaxy Laboratories, is helping Ranbaxy deal with all of its FDA regulatory issues. According to The Hindu Business Line, the assurances were made Thursday in talks between Daiichi Sankyo CEO George Nakayama and Commerce & Industry Minister Anand Sharma.