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

21 Pages Posted: 9 Jun 2009  

Shreyash Shah

affiliation not provided to SSRN

Gautam Jain

affiliation not provided to SSRN

Amit Tambade

affiliation not provided to SSRN

Chitra Khatri

affiliation not provided to SSRN

Shuaib M. Fakih

affiliation not provided to SSRN

Date Written: June 2, 2009

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

Keywords: valuation, multiples, synergies, pharma, India

JEL Classification: G34

Suggested Citation

Shah, Shreyash and Jain, Gautam and Tambade, Amit and Khatri, Chitra and Fakih, Shuaib M., The Ranbaxy - Daiichi Sankyo Deal: Where Do They Go Now? (June 2, 2009). Available at SSRN: https://ssrn.com/abstract=1415972 or http://dx.doi.org/10.2139/ssrn.1415972

Shreyash Shah

affiliation not provided to SSRN ( email )

Gautam Jain

affiliation not provided to SSRN ( email )

Amit Tambade

affiliation not provided to SSRN ( email )

Chitra Khatri

affiliation not provided to SSRN ( email )

Shuaib M. Fakih (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

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