Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Merger or Acquisition (April 2014)
20 slides from Sun Pharmaceutical Industries's merger presentation, Apr 7, 2014
Slide 1: Creating the World's 5th Largest Specialty Generic Pharma Company
Creating the World’s 5th Largest Specialty Generic Pharma Company Sun Pharma – Ranbaxy Merger – April 7, 2014 www.sunpharma.com www.ranbaxy.com
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 3: Creating the World's 5th Largest Specialty Generic Pharma Company
Creating the World’s 5th Largest Specialty Generic Pharma Company CY 2013 pro forma Revenues – US$ 4.2 bn 5th largest global specialty generic pharma company No. 1 pharma company in India, one of the fastest growing markets No. 1 Indian pharma company in US market Over US$ 2 billion in sales Pipelin
Slide 4: Transaction Highlights
Transaction Highlights Sun Pharma to acquire Ranbaxy Ranbaxy shareholders to get 0.8 shares of Sun Pharma stock for every share of Ranbaxy Deal size approximately US$ 4 billion; ~ 2.2x LTM sales US$ 250 million of revenue and operating synergies by 3rd year post close Daiichi-Sankyo to become the se
Slide 5: Proposed Transaction Terms
Proposed Transaction Terms Indemnity: In connection with the transaction, Daiichi-Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the recent subpoena which Ranbaxy has received from the United States Attorney for the Toans
Slide 6: Sun Pharma + Ranbaxy: Profile of a New Global Leader
Sun Pharma + Ranbaxy Profile of a New Global Leader 6
Slide 7: Sun Pharma + Ranbaxy: Profile of a New Global Leader
Sun Pharma + Ranbaxy: Profile of a New Global Leader 5th largest global specialty generic pharma company No. 1 pharma company in India No. 1 in 13 specialty segments Strong OTC business with trusted brands No. 1 Indian pharma company in US market Over US$ 2 billion in sales Pipeline of 184 ANDAs inc
Slide 8: Strengthened Global Footprint
Strengthened Global Footprint ROW India 17% India India 21% ROW 22% 23% 31% ROW 50% US US 29% US 60% 47% Sun Ranbaxy Combined Pharma Entity Pro Forma CY 2013 Sales : US$4.2 billion Note: ROW includes all non-US & Non-India sales + API and others. Creating the World's 5th Largest Specialty Generic Co
Slide 9: World's 5th Largest Specialty Generic Pharma Co
World’s 5th Largest Specialty Generic Pharma Co 2013 Worldwide Generic Sales ($ in billions) 1. Teva $9.2 2. Sandoz $8.2 3. Actavis $6.3 4. Mylan $5.9 Sun + Ranbaxy $4.3 5. Sun $2.5 6. Hospira $2.4 7. Sanofi $2.2 8. Aspen $2.1 9. Ranbaxy $1.8 10. Lupin $1.8 11. STADA $1.7 12. Dr. Reddy's $1.7 13. Fr
Slide 10: India's Largest Pharma Company
India’s Largest Pharma Company Market Share Last 12 Months of Branded Generic Sales in India as of February 2014 ($ in mn) Sun + Ranbaxy 9.2% $1,116 1. Abbott 6.5% $783 2. Sun 5.4% $651 3. Cipla 5.0% $604 4. Cadila 4.4% $538 5. Ranbaxy 3.8% $465 6. GSK 3.7% $447 7. Mankind 3.6% $431 8. Alkem + Cache
Slide 11: Leadership In Prescription Share
Leadership In Prescription Share Number 1 Position with 13 Class of Specialist Doctors* Sun Pharma Current Ranking Combined Entity Ranking Specialist [Oct ’13] Specialist [Oct ’13] Psychiatrists 1 Psychiatrists 1 Neurologists 1 Neurologists 1 Cardiologists 1 Cardiologists 1 Orthopaedic 1 Orthopaedic
Slide 12: Complementary Therapeutic Basket
Complementary Therapeutic Basket Sr. No. Therapy Sun Ranbaxy Combined Entity 1 Psychiatry 2 Neurology 3 Cardiology 4 Orthopaedic Combined 5 Ophthalmology entity to 6 Gastroenterology have strong 7 Nephrology positioning in Indian 8 Diabetology market 9 Dermatology 10 Urology 11 Gynaecology 12 Anti-i
Slide 13: India: Broad & Complementary Branded Presence
India: Broad & Complementary Branded Presence • Combined entity: 31 brands Others 7% Diabetology 8% Respiratory in Top 300 4% Gynecology 6% Neuropsychiatry • Minimal overlap 16% VMN 6% • Enhances rural reach Dermatology 6% Clear Leadership Cardiology Pain & 16% • Chronic therapies Analgesics 8% + Ga
Slide 14: US: Growing Leadership Position
US: Growing Leadership Position CY 2013 Sun Pharma Ranbaxy pro forma Revenues – Revenues – Revenues – US$ 1.7 bn US$ 0.5 bn US$ 2.2 bn Strong pipeline of 184 ANDAs including high-value FTFs Clear Dermatology leadership No. 1 in generic dermatology, No. 3 in branded Coverage across Actinic keratosis,
Slide 15: Emerging Markets: Bolsters Presence
Emerging Markets: Bolsters Presence CY 2013 Sun Pharma Ranbaxy pro forma Revenues – Revenues – Revenues – US$ 0.3 bn US$ 0.6 bn US$ 0.9 bn Merged entity to have global footprint across 55 markets Increasing leadership in key Emerging Markets Russia, Romania, South Africa, Brazil & Malaysia Extensive
Slide 16: Financially Compelling Combination
Financially Compelling Combination Profile & Value Synergies Nearly US$ 4.2 billion in pro forma ~US$ 250 million of revenue & sales for the twelve months ended operational synergies by 3rd year December 31, 2013 Primarily derived from top-line Approximately US$ 1.2 billion in pro growth, and procur
Slide 17: Track record of successful turnaround of acquisitions
Track record of successful turnaround of 16 acquisitions 4 Acquisitions - Bryan 4 Recent Acquisitions Hungary, Able, Chattem Taro, DUSA, URL 3,000 8 Early Acquisitions 50 2,500 40 2,000 30 1,500 20 1,000 10 500 0 0 Net Sales ($ Mn) EBITDA ($ Mn) Creating the World's 5th Largest Specialty Generic Co
Slide 18: Next Steps
Next Steps Announcement: April 7, 2014 Post Closing Indian Central Government, Integration planning State Governments and leadership teams Integration appointed High Courts of Gujarat, Regulatory Punjab and Haryana Competition Commission of ~US$ 250 million in India synergies by 3rd year Transaction
Slide 19: A Landmark Transaction
A Landmark Transaction Creating the World's 5th Largest Specialty Generic Co - Sun Pharma - Ranbaxy Merger 19
Slide 20: For updates and specific queries, please visit www.sunpharma.com
For updates and specific queries, please visit www.sunpharma.com or feel free to contact Nimish Desai Frederick Castro Tel : +91 22 6645 5645, Ext 5717 Tel : +91 22 6645 5645, Ext 5964 Tel Direct : +91 22 66455717 Tel Direct : +91 22 66455964 Mobile : +91 98203 30182 Mobile : +91 99206 65176 nimish.
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