The Ranbaxy - Daiichi Sankyo Deal: Where Do They Go Now?

Abstract:     
The announcement of acquisition of Ranbaxy by Daiichi Sankyo in June 2008 was a big surprise in India. Ranbaxy - the largest pharma company in India - was itself growing through acquisition. It had a vision to be in the top 5 global generic pharma company by 2012. Daiichi Sankyo - a Japan-based innovator company - was acquiring a generic company. The price it paid to acquire shares of Ranbaxy represented a premium of 31% over the previous day closing and a premium of 80% over the price prevailing few months before the announcement. The case provides data to examine how Daiichi Sankyo can derive synergies from Ranbaxy. It also shows, through multiples, the likely valuation of Ranbaxy

Number of Pages in PDF File: 21

Keywords: valuation, multiples, synergies, pharma, India

JEL Classification: G34

working papers series