Sun Pharmaceuticals Acquire Taro Pharmaceuticals

Abstract

The major pharma players in India want to invest in R & D but because their emphasis has so far been on the manufacturing of the generic drugs and hence there is reluctance on their part to deal with the R&D with vigor with which it should be introduced. The only answer lays in both mergers and acquisitions of the generic stalwarts with Indian pharma companies wherein they can collectively put a better use of the competitive advantage that India has in the form of cost effective chemical synthesis, strong economic growth and consolidations. This case study is an attempt to study the acquisitions of Taro Pharma industries of Israel, a multinational genetic manufacturer by Sun Pharma industries Ltd of India on May 21 2007. This case study will help understand the way mergers and acquisitions have become an indispensable way of existence for the pharma industry in India. It shall leave the question to the floor whether the regulatory environment is conducive for such developments in this county, and whether the international businesses could envisage such situations and had prepared itself for it. Should such practices be further encouraged in the better interest of the pharma industry? Is there a further need to amend the Company Law provisions to give better insight to the shareholders and stakeholders for such dealings by the MNCs.Keywords: Mergers and Acquisitions, Generic Manufacturers, Pharma Industry, Research and Development.