Sun Pharma to Acquire Full Ownership of Taro Pharmaceutical in $347.8 Million Deal

18 Jan 2024 , 10:34 AM

India’s Sun Pharmaceutical Industries Limited announced on Wednesday that it would purchase all of Taro Pharmaceutical Industries’ outstanding shares for $43 in cash per share, thereby acquiring complete control of the company.

According to calculations made by Reuters, Sun Pharma’s offer is worth roughly $347.8 million, or 4.2% more per share than Taro closed on Wednesday.

The Indian pharmaceutical company, which presently has 78.5% of Taro, made an offer to purchase the remaining portion of the company for $38 per share when it opened a new tab in May.

The agreement is the result of nearly 17 years of back and forth to seize complete control of the generic drugmaker with a U.S. listing that conducts the majority of its business in North America.

Taro would become a privately held company and be delisted from the New York Stock Exchange upon completion of the merger, which is anticipated to conclude in the first part of the year, according to the companies.

Charges against the former Taro executive, who was suspected of plotting to manipulate the pricing of generic drugs between 2013 and 2015, were dropped by the US authorities in November.

In July 2020, amidst a wide-ranging investigation by the Justice Department into purported pricing malpractices in the generic medication industry, Taro consented to pay over $200 million to settle criminal price-fixing charges.

For feedback and suggestions, write to us at [e-mail]