A Japanese pharmaceuticals group has astonished the Tokyo market by taking over Ranbaxy Laboratories, India's largest maker of generic drugs, in a deal worth up to $4.6 billion (£2.3 billion).
Daiichi Sankyo's move on Ranbaxy was described by Tokyo investors as being bold and out of character and it may mark the start of a strategic shift towards emerging markets by Japan's pharmaceutical industry..
EFFECT ON INDIAN INDUSTRY:-
NEW DELHI: Ranbaxy's takeover by a Japanese multinational poses a big threat to the survival of the domestic generic industry, which is credited with supplying affordable drugs for millions around the world. Generic majors such as Cipla, Ranbaxy, Dr Reddy's, Aurobindo Pharma have been churning out medicines to treat cancer, AIDS, hyper-tension or even antibiotics to fight infections, whose prices are the lowest in the world. India is the biggest supplier of cheaper versions of essential drugs to the developing world and has a share of nearly 25% in the overall generic space. Domestic generic biggies particularly Ranbaxy and Cipla have been recognized globally, not only for their low-cost medicines, but also of their ability to produce quality medicines.
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I dont think that this takeover will affect any of the supplies of drugs because it is already being cleared by the ceo of japanese drugmaker that they will not have any influence in the R&D of ranbaxy..Although takeover or merger is a part of company's life cycle and it is not necessary that a company which is being acquired by other company will be affected negatively in it's production context. This also provide a thrat to those manufacturers who are not still faced tough competiton to tight their shoe laces.
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