Sun Pharma Acquires Israel’s Taro Pharma in a Deal Worth $347.73 Mn

This merger comes after almost 17 years of negotiations and discussions. Additionally, the deal is expected to close in the first half of 2024.

Indian drugmaker Sun Pharma has signed a definite merger agreement to wholly acquire its Israeli subsidiary Taro Pharmaceutical Industries for a deal of $347.73 million.

As per the merger deal, Sun Pharma has agreed to acquire all outstanding ordinary shares of Taro Pharmaceutical which were not earlier owned by the company or its affiliates for $347.73 million, which is approximately INR 2,891.76 Cr, in cash.

Reportedly, the acquisition price is $43 per share in cash without interest for 8,086,818 shares, which represent 21.52% of the total outstanding Taro shares.

Sharing thoughts on the merger, Dilip Shanghvi, MD, Sun Pharma, said, “Post completion of the merger, the combined entity will firmly move forward, leveraging its global strengths and capabilities to better serve the needs of patients and healthcare professionals.”

This merger comes after almost 17 years of negotiations and discussions. Additionally, the deal is expected to close in the first half of 2024.

What the $347.73 Mn Deal Entails

The merger agreement was unanimously recommended by the Special Committee, which was formed by Taro’s Board of Directors to consider Sun Pharma’s proposal. Following a comprehensive evaluation of the proposal with assistance from independent financial and legal advisors, the Special Committee approved the agreement.

Before the merger, Sun Pharma held a controlling stake of 78.48% in Taro Pharmaceutical Industries Ltd. However, in a merger deal, Sun Pharma has agreed to hold 100% of Taro’s shares, resulting in full ownership of the company.

Currently, the pharma company is publicly listed on the New York Stock Exchange. However, upon completion, Taro will become a privately held company and its shares will no longer be listed on the NYSE.

Uday Baldota, CEO, Taro Pharma, said, “Taro is committed to delivering high-quality products to our patients and customers around the world. This merger will further enable us to compete effectively in our products and markets.”

Established in 1950, Taro Pharmaceutical Industries Ltd., also known as Taro Pharma, is a research-based international pharmaceutical company. It aims to provide quality products through scientific innovations, diligence, and precision and is dedicated to meeting the needs of its customers through the discovery, development, manufacturing, and marketing of the highest-quality healthcare products.

Taro focuses on developing off-patent pharmaceuticals. It supplies a variety of prescription and over-the-counter products such as tablets, capsules and topical formulations to markets including the US, Canada and Israel.

Sun Pharma’s Series of Acquisitions

Last month, Sun Pharmaceutical agreed to acquire a 16.7% stake in the US-based Lyndra Therapeutics for $30 million. Lyndra Therapeutics Inc. develops novel delivery technology for long-acting oral (LAO) therapies.

This strategic investment seeks to support the development of advanced pharmaceutical delivery technologies and get access to the technology for certain molecules and territories.

In September, Sun Pharma inked an agreement with US-based Pharmazz on the cerebral ischemic stroke drug Soveteltide under the brand name Tyvalzi. Under this agreement, Sun Pharma granted the rights to market Sovateltide in India under the brand name Tyvalzi (Sovateltide). Moreover, USA's Pharmazz is expected to receive upfront and milestone payments, including royalties as a part of the agreement.

With this initiative, the Indian multinational pharmaceutical company aims to provide high-quality, affordable medicines trusted by healthcare professionals and patients.

Founded in 1983, Sun Pharmaceutical Industries Limited, also known as Sun Pharma is an Indian multinational pharmaceutical company that manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100 countries across the globe. The company aims to promote excellence through strategic innovation, supported by strong R&D capabilities.