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AKIPRESS.COM - India's Sun Pharmaceutical Industries is buying troubled generic drugmaker Ranbaxy Laboratories in a $4 billion all-stock transaction, Miami Herald reported today.
The combined company will be India's biggest pharmaceutical firm, with annual revenue estimated at $4.2 billion.
Shares of Sun Pharma rose 1.7 percent. Ranbaxy's shares were down 4.8 percent in trading on the Bombay Stock Exchange.
Ranbaxy is the leading drugmaker in India's $26 billion generic pharmaceutical industry, but it has faced penalties from U.S. regulators for years. The U.S. has banned imports of drugs from two of its factories because of concerns about quality control.
The acquisition will allow Sun Pharma to tap into Ranbaxy's strong global presence and manufacturing capabilities. The combined company will have 47 factories across five continents and operations in 65 countries.
Ranbaxy has annual revenue of about $2 billion.