“Sun Pharma Secures Full Control of Taro Pharmaceutical in $348 Million Deal.
In a strategic move, Sun Pharmaceutical Industries Limited, a prominent Indian drugmaker, has announced its intention to acquire the remaining stake in Taro Pharmaceutical Industries, solidifying its control over the Israeli unit. The deal, valued at $347.8 million, involves purchasing all outstanding shares at $43 per share in cash, marking a 4.2% premium to Taro’s closing price on the preceding Wednesday.
Sun Pharma presently holds a 78.5% stake in Taro and had initially proposed acquiring the remaining shares at $38 per share in May. The successful completion of this transaction, anticipated in the first half of the year, will result in Taro transitioning into a privately held company, prompting its delisting from the New York Stock Exchange.
This development culminates nearly 17 years of negotiations and maneuvering by Sun Pharma to gain complete control of Taro, a U.S.-listed generic drug manufacturer with a predominant presence in the United States and Canada.
Notably, the U.S. government cleared the path for this acquisition by dismissing charges in November against a former Taro executive accused of conspiring to fix generic drug prices between 2013 and 2015. Taro had previously settled criminal price-fixing allegations in July 2020, agreeing to pay over $200 million, amidst a broader crackdown by the Justice Department on pricing practices within the generic drug market.
The acquisition reflects Sun Pharma’s strategic vision to strengthen its foothold in the global pharmaceutical landscape, particularly in the lucrative North American market. The move is poised to reshape the dynamics of the pharmaceutical industry, offering new opportunities for growth and innovation.”