Daiichi-Ranbaxy

Ankit Mehta Click to edit Master Rishabh Shah Swami Kambli Mangesh Gaikwad

subtitle style

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Whats it about

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Overview of Pharma industry

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The Indian Pharmaceutial Industry

Growth Driver: -Strong IRP regime -Growth of generic markets in EU and US -Capital and operational

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The Japanese Pharmaceutical Market

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Daiichi Sankyo Company, Limited

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Ranbaxy

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Other Options Available

Looking at the huge valuation it paid for the acquisition, it would have been better to 1st enter in 4/30/12 a partnership with Ranbaxy and later after assessing

Details of the Deal

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Valuation

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Advantages for DIS

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Advantages for Ranbaxy

Opportunity to expand API business through supplies by Daiichi

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Issues with the deal

Huge premium paid to acquire the stake didnt materialize into business and the goodwill needed to be impaired The minority shareholders of Ranbaxy lost out as only the promoters sold at Rs737/share Due to legal cases which Ranbaxy lost in US, the share prices tanked and Daiichi didnt exercise its warrants The loses which came immediately after the deal made only the promoters richer at cost of minority shareholders

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Current scenario

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Current scenario contd

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Thanking you

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