Sun completes Taro buy, shares hit record high

Shares in Sun Pharmaceutical rallied to an all-time high on Wednesday after the drug maker said it had completed acquisition of a controlling stake in Taro Pharmaceutical Industries Ltd.

Shares in Sun Pharmaceutical rallied to an all-time high on Wednesday after the drug maker said it had completed acquisition of a controlling stake in Taro Pharmaceutical Industries Ltd.

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Sun shares slipped 0.2 per cent at close after rising 3.1 per cent to an all-time high of R1,985. The purchase of Taro after a protracted legal battle will help Sun expand its generic offerings in the US, Canada and Israel.

Sun has paid about $39 million for the founding families' 12.7 per cent stake, taking its shareholding in Taro to 48.7 per cent at a total investment of $144 million, Sun spokeswoman said. Sun shareholders will get voting rights of 65.8 per cent.

Sun said in a statement dated September 21 that the parties had settled all outstanding litigations among themselves. “We intend to build on Taro’s market presence in US, Israel and Canada and its expertise in dermatology and pediatrics and over-the-counter products,” said Dilip Shanghvi, chairman, Sun, who would also serve as chairman of the board of Taro. Taro said its current board members were resigning and that appointees of Sun would become directors of Taro.