Sun seals Ranbaxy deal, to invest $300 mn in R&D.

Sun Pharmaceutical Industries, India's largest drugmaker, on Wednesday announced the closure of its merger with Ranbaxy Laboratories and said the integration would deliver synergies worth $250 million (about Rs. 1,500 crore) in three years.

Announcing an operational blueprint to achieve synergies through value-creation across functions, Sun Pharma Managing Director Dilip Shanghvi told reporters here the company would invest about $300 million (about Rs. 1,800 crore) in research and development (R&D) this year, six-seven per cent of the combined revenue.

The acquisition of Ranbaxy would not restrict the combined entity from making more large acquisitions, Shanghvi said. He, however, added his 'most important focus' was winning the confidence of regulators. 'We are committed to bring back confidence of the US FDA (US Food and Drug Administration). We will fix problems and create value for shareholders.'

BS