Introduction

 Pharmaceutical industry is one of the most “Knowledge

Driven” industry, and is continually in a state of dynamic
transition. Diversities in lifestyles and diseases offer stiff
challenges to the design of specific and targeted solutions.
 The union of Japan’s Daiichi-Sanakyo and India’s Ranbaxy is
the biggest acquisition of a listed Indian entity till date. In a
coup of sorts, Daiichi-Sankyo acquired 34.8% stake in
[[Ranbaxy on 11th June 2008 for a value $2.4 billion.
 Synergies Of Acquisition
 Generic drug markets can allow Daiichi-Sankyo to tap the
potential of the generics business, Ranbaxy’s branded drug
development initiatives for the developed markets will be
significantly boosted through the relationship.
 To a large extent, Daiichi-Sankyo will be able to reduce its
reliance on only branded drugs and margin risks in mature
markets and benefit from Ranbaxy’s strengths in generics to
introduce generic versions of patent expired drugs, particularly in
the Japanese market.
 Both Daiichi-Sankyo and Ranbaxy possess significant
competitive advantages, and have profound strength in striking
lucrative alliances with other pharmaceutical companies.
 Despite these strengths, the companies have a set of pain points
that can pose a hindrance to the merger being successful or the
desired synergies being realized.
 World Wide Operations
 Global Pharma Companies are experiencing an ever changing
landscape ripe with challenges and opportunities. In this
challenging environment Ranbaxy is enhancing its reach
leveraging its competitive advantages to become a top global
player.
 Driven by innovation and speed to market they focus on
delivering world-class generics at an affordable price. Their
unwavering determination is to achieve excellence that will lead
to new global benchmarks. The people have consistently risen
above all challenges maximized opportunities and positioned
Ranbaxy as a leader in the global generics space.
 Ranbaxy’s global footprint extends to 49 countries embracing
different locales and cultures to form a family of 51 nationalities
with an intellectual pool of some of the best minds in the world.
 Operations In India
 Ranbaxy is one of the leading pharma Companies in India commanding
a market share of 5.07% registering a growth of over 17%. Growing
ahead of the market the Company has enhanced its competitive position
in the domestic market through its focused approach. The Company’s
business has been realigned to its customer groups and investments have
been made in high growth segments. These efforts have resulted in
strengthening its Chronic franchise (Life Style led) as well as has
reinforced its leading position in the Acute segment.
 In the NDDS segment, Ranbaxy is the market leader with 7.9% market
share and its NDDS product portfolio contributes to about 9% of its total
turnover. Its product portfolio spans across Acute & Chronic Business
covering Anti-infectives, Nutritionals, Gastro-intestinals, Pain
Management ( Acute) Cardiovasculars, Dermatologicals, Central
Nervous Systems (Chronic)segments.
 Amongst the pharmaceutical companies in India, Ranbaxy has the largest
R&D budget with an R&D spend of over US $ 100Mn

 Ranbaxy views its R&D capabilities as a vital component of its business

strategy that will provide the company with a sustainable, long-term
competitive advantage. The company today has a pool of 1,200 scientists
who are engaged in path-breaking research.

 The robust R&D environment within the company for both drug discovery &
development and for generics is designed to bring into sharper focus, the
unique needs of both equally.

 Ranbaxy’s manufacturing plants for Active Pharmaceutical Ingredients and

Dosage Forms comply with the requirements of Good Manufacturing
Practices (GMP) and Good Laboratory Practices (GLP). The modern world-
class state-of-the-art production facilities meet the stringent requirements of
numerous International health and regulatory Agencies like the FDA - USA,
TGA - Australia, MCA - UK and WHO.

 leading authorities frequently audit their Plants to ensure that quality and
processes are diligently followed. These practices and approvals ensure an
effective framework for manufacture of high quality products and for
effective use of resources and reduction of waste materials.
 Key Strenghts
 Leadership in Novel Drug Delivery System (NDDS) products, which offer value-added
differentiation over conventional products. Key brands include Curran OD
(Ciprofloxacin), Zanocin OD (Ofloxacin) & Sporidex AF (Cephalexin)

 Strong brand building capabilities, reflected in the fact that 20 brands feature in the “Top-
300 brands of the Industry” list. The leading 5 brands are Sporidex (Cephalexin), Cifran
(Ciprofloxacin), Mox (Amoxycillin), Zanocin (Ofloxacin) & Volini (Diclofenac)

 A well-built customer interface, with one of the highest customer coverage across India,
and an excellent franchise with both Generalists & Specialists. This is proven by Ranbaxy
India’s Corporate Image being perceived as ‘Best-in-Class’ by customers

 Great emphasis is placed on Knowledge Management and Medico-marketing initiatives

such as Advisory Board Meetings, Post Marketing Surveillance Studies and Continuous
Medical Education programs. It resulted in an excellent customer relationship with the
medical fraternity.
 A futuristic approach, the India operations attempts to
capitalize on the fast- emerging, high-growth segments with
innovative products and services:
 Dry Power & Metered Dose Inhalers have been launched in
the Respiratory segment. It is for the first time in India, that a
company has launched its entire HFA propellant based MDI
range. The world’s first novel product, Osovair (Formoterol
+ Ciclesonide) inhalation capsules has been introduced in the
Indian market.
 Anti-diabetic franchise has been further consolidated with
launch of Insucare (Insulin) with an innovative delivery
mechanism
 A slew of products have been launched in the Dermatology
segment: Suncross (Sunscreen lotion), Sotret (Isotretnoin),
Eflora (Eflornithine)
 Conclusion
 In summary, Daiichi-Sankyo’s move to acquire Ranbaxy have
enable the company to gain the best of both worlds without
investing heavily into the generic business. Through the deal,
Ranbaxy has become part of a Japanese corporate framework,
which is extremely reputed in the corporate world.
 As a generics player, Ranbaxy is very well placed in both
India and abroad although its share performance belies its true
potential.
 Given Ranbaxy’s intention to become the largest generics
company in Japan]], the acquisition provides the company
with a strong platform to consolidate its Japanese generics
business.
Thank You