CCI, Indian Regulatory Authority Approves Sun Acquisition Of Ranbaxy With Conditions
By Cyndi Root
The Competition Commission of India (CCI) has approved Sun Pharmaceuticals acquisition of Ranbaxy, though with several conditions. The CCI announced the approval in a press release, stating that the companies must divest several products to address monopoly concerns. The agreement between the two companies was made in April 2014, creating the largest drug company in India and the fifth largest generics firm globally. The CCI wrote, “The Commission in its meeting held on 05.12.2014 approved the proposed merger between Sun Pharma and Ranbaxy, subject to the parties inter alia carrying out the divestiture of their products relating to seven relevant markets for formulations. Further, the Commission also directed that the proposed merger shall not take effect before the parties have carried out the divestiture.”
CCI Approval
The CCI’s review of the acquisition occurred following notice from Sun Pharma that it intended to merge Ranbaxy into Sun Pharma. The Indian agency examined the impact that the merger would have on the market share of the parties, the market share of the proposed combination, and the market share of competitors. Its investigation focused on formulations that would have “an appreciable adverse effect on competition in the relevant market in India.” The CCI also reviewed pipeline products and active pharmaceutical ingredients (APIs). The CCI published its order, concluding that the adverse effect of the proposed combination of companies would be eliminated by divestiture of certain products.
Product Divestitures
Business Today India reports that the CCI asked Ranbaxy to divest six products and asked Sun Pharma to divest one product. The CCI intends to convene a monitoring committee to oversee compliance. Sun Pharma was ordered to divest Tamsulosin and Tolterodine products, marketed under the Tamlet brand name. Ranbaxy was ordered to divest Leuprorelin products, marketed under the Eligard brand name. The company must also divest Terlibax, Rosuvas, Olanex, Raciper, and Triolvance.
Sun Pharma Activities
Sun Pharma was established in 1983 and is now a major pharmaceutical company in India and worldwide. In September 2014, the company partnered with Merck & Co. on tildrakizumab, an antibody being investigated in Phase 3 trials for the treatment of chronic plaque psoriasis. In July 2014, Sun Pharma acquired Pharmalucence, a Massachusetts company, for its parenteral production capabilities and Nuclear Medicine products.