Sun Pharma share price declines as it revises bid to buy balance Taro stake
Sun Pharmaceutical Industries share price, having gained 56% in the last six months, declined 1.91% in intraday trades on Tuesday. Sun Pharma remains in focus over its plan to acquire 100% ownership in its US subsidiary Taro Pharmaceutical Industries. Sun Pharma, after having announced its strategic plan in May 2023 to acquire 100% ownership of Taro now has increased its bid to purchase the outstanding shares of Taro Pharma.
The revised offer stands at $43 per share in cash, an increase from the previous offer of $38 per share. Sun, already owns 78.5% of Taro and has been attempting to complete the buyout of remaining shares for sometime. Post the acquisition, Sun Pharma is expected to benefit from integration and cost synergies in the manufacturing areas and can utilise Taro’s cash for Sun Pharma’s merger and acquisitions, said analysts.
Also Read- Mankind Pharma stock drops nearly 5% on large block deals Taro has assets of $1.3 billion, with cash and short-term bank deposits totaling $274 million. Taro, which does most of its business in the United States and Canada, reported $573 million during its fiscal year 2023. As progress on Taro share buyback will remain watched for, the prospects for Sun Pharma earnings are being led by ramp up of its specialty portfolio.
Analysts at Sharekhan expect Sun Pharma’s global specialty sales to surpass $1 billion in FY2024. Sun Pharma has a healthy specialty portfolio of six drugs. US formulation sales at $ 430 million during Q2, grew 4.2% over same period last year.
Sun’s Global specialty sales at $ 240 million, grew 19.3% over Q2 last year. Sun Pharma is planning to expand its specialty portfolio in other emerging markets. Analysts at Sharekhan factoring in a new product launch
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