Ranbaxy, India's No.1 drugmaker by sales and
63.4 percent held by Daiichi Sankyo Co Ltd <4568.T>, is banned
from exporting drug ingredients to the United States, while Sun
Pharmaceutical's Karkhadi plant is also barred from shipping
products by the U.S. Food and Drug Administration.
Sun Pharmaceutical said Ranbaxy shareholders will get 0.8 Sun
Pharma shares for each Ranbaxy share. It added that the merged
company will become the world's fifth-largest specialty generics
company and the largest drug firm in India.
Daiichi Sankyo said in a statement that it will hold about a 9
percent stake in Sun Pharmaceutical after the deal, which has
been agreed to by the boards of both companies.
In a separate statement, Daiichi Sankyo said the U.S. Attorney's
Office in New Jersey had issued an administrative subpoena to
Ranbaxy seeking information related to the company's Toansa
plant in India. Ranbaxy is cooperating with the information
Shares in Daiichi Sankyo climbed as much as 4.1 percent to a
2-1/2 month high of 1,827 yen in early Monday trade, outpacing a
1.2 percent decline in the benchmark Nikkei <.N225>.
(Reporting by Dominic Lau; editing by Stephen Coates and Edwina
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