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Though preoccupied with Ranbaxy’s integration with the company, India’s top generics drug maker Sun Pharmaceutical Industries Limited said the window for the new acquisitions remained open.
The company, however, would be confined to such opportunities that do not put too much pressure on the management in the given circumstances, said Sun Pharmaceuticals founder and managing director Dilip S Shanghvi.
“It all depends on what the acquisition is. If it is a small acquisition, we may do it or if it is an acquisition which is very well run on its own, if it doesn't take too much pressure on the management then also we will do it. If it requires a serious integration effort then we will not be able to do it,” Shanghvi said in an interaction with the media last Friday.
Sun Pharma has emerged as the world’s fifth largest generics drug company after it agreed to buy Ranbaxy Laboratories for $3.2 billion, the biggest-ever deal by an Indian pharmaceutical player, last year.
“Managing the integration of Ranbaxy is going to take a lot of time, so also of the company’s time and senior management’s time. So, we don't want to do many things at the same time,”he said in response to a question if he needed time before looking at a fresh target.
Sun-Ranbaxy merger
Shanghvi was hopeful that the entire legal formalities of the Sun-Ranbaxy merger would be completed by the middle of the next month as the merger application was coming up before the Punjab High Court for hearing on February 2. The company would announce the fourth quarter results as a combined entity if the merger process completes by next month, according to him.
In his view, learning to manage the portfolio of Ranbaxy products as they are very different from that of Sun, and leveraging the experience of the former in geographies where the latter had little or no presence are some of the important challenges for future growth.
On the question of time lines regarding the implementation of Competition Commission of India (CCI)’s direction for sale of 7 products to ensure fair competition, Shanghvi said it was difficult to give a time line.
“The CCI had appointed an agency to oversee the transaction. We will work with the agency to close that transaction once we finalise the buyer,”he said.
FDA review
On the likely impact of the generics priority review programme undertaken by the US Food and Drug Administration (US FDA), the Sun Pharma chief said this and other initiatives of the US drug regulator would act as a direct catalyst to help the industry focus on meeting compliance. “Because, if it helps and is useful for business then every company will focus on meeting or exceeding the FDA expectations,” he said.
On the FDA observations regarding Sun Pharma’s Halol plant in Gujarat, Shanghvi said they had responded to these observations and continued to update with the regulator of the progress they are making in meeting the commitments.
He, however, refused to give a direct reply on a possible succession plan at his company. “I need to first achieve a situation where I am not responsible for anything in the sense of direct accountability,” he said.
The company, however, would be confined to such opportunities that do not put too much pressure on the management in the given circumstances, said Sun Pharmaceuticals founder and managing director Dilip S Shanghvi.
“It all depends on what the acquisition is. If it is a small acquisition, we may do it or if it is an acquisition which is very well run on its own, if it doesn't take too much pressure on the management then also we will do it. If it requires a serious integration effort then we will not be able to do it,” Shanghvi said in an interaction with the media last Friday.
Sun Pharma has emerged as the world’s fifth largest generics drug company after it agreed to buy Ranbaxy Laboratories for $3.2 billion, the biggest-ever deal by an Indian pharmaceutical player, last year.
“Managing the integration of Ranbaxy is going to take a lot of time, so also of the company’s time and senior management’s time. So, we don't want to do many things at the same time,”he said in response to a question if he needed time before looking at a fresh target.
Sun-Ranbaxy merger
Shanghvi was hopeful that the entire legal formalities of the Sun-Ranbaxy merger would be completed by the middle of the next month as the merger application was coming up before the Punjab High Court for hearing on February 2. The company would announce the fourth quarter results as a combined entity if the merger process completes by next month, according to him.
In his view, learning to manage the portfolio of Ranbaxy products as they are very different from that of Sun, and leveraging the experience of the former in geographies where the latter had little or no presence are some of the important challenges for future growth.
On the question of time lines regarding the implementation of Competition Commission of India (CCI)’s direction for sale of 7 products to ensure fair competition, Shanghvi said it was difficult to give a time line.
“The CCI had appointed an agency to oversee the transaction. We will work with the agency to close that transaction once we finalise the buyer,”he said.
FDA review
On the likely impact of the generics priority review programme undertaken by the US Food and Drug Administration (US FDA), the Sun Pharma chief said this and other initiatives of the US drug regulator would act as a direct catalyst to help the industry focus on meeting compliance. “Because, if it helps and is useful for business then every company will focus on meeting or exceeding the FDA expectations,” he said.
On the FDA observations regarding Sun Pharma’s Halol plant in Gujarat, Shanghvi said they had responded to these observations and continued to update with the regulator of the progress they are making in meeting the commitments.
He, however, refused to give a direct reply on a possible succession plan at his company. “I need to first achieve a situation where I am not responsible for anything in the sense of direct accountability,” he said.
