Sun Pharmaceutical Industries Ltd.

Sun Pharmaceutical Industries and Ranbaxy Laboratories have received the order of the Competition Commission of India (CCI) dated December 5, 2014 by which CCI has approved the acquisition of Ranbaxy by Sun Pharma, subject to compliance with certain conditions.

Sun Pharma and Ranbaxy had filed the notice with the CCI on May 06, 2014 and sought its approval with respect to the deal. Over the past few months, the CCI has sought information and detailed clarifications for the purposes of making its assessment. One of the preconditions of the order is that parties procure the divestment of seven products. These products constitute less than 1% of the combined entity’s revenues in India.

The seven formulations include tamsulosin + tolterodine (combined market share of 90-95 percent); rosuvastatin + ezetimibe (90-95 percent); and leuprorelin (85-90 percent). The others which adversely impact the market but their share is less than 80 percent are terlipressin (65-70 percent); olanzapine + fluoxetine (65-70 percent); levosulpiride + esomeprazole (60-65 percent); and olmesartan + amlodipine + hydroclorthiazide (40-45 percent). According to the terms inked between Ranbaxy and Sun Pharmaceuticals in April, each Ranbaxy shareholder will get 0.8 shares of Sun Pharmaceuticals for every share of Ranbaxy.