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Sun bid to address monopoly concern

Mumbai, Aug. 13: Sun Pharma today said it was in discussion with the Competition Commission of India (CCI) to allay apprehensions about the impact of its acquisition of Ranbaxy Laboratories on the domestic pharmaceutical sector.

The fair trade watchdog had sought information from both companies to ascertain whether the deal would impact fair competition in the sector.

The $4-billion deal will create the largest pharmaceutical company in India. There are concerns that the acquisition will see the combined entity have a sizeable presence across various therapy segments.

Speaking at a conference call on its first-quarter results, managing director Dilip Shanghvi said the company was in discussions with the Competition Commission to address concerns that the merged entity would enjoy a monopoly status in some therapy categories.

He added that the competition authorities in India and the US were yet to clear the Ranbaxy acquisition.

Last month, the deal was approved by the Bombay Stock Exchange and the National Stock Exchange. The clearance from the bourses will allow the two companies to file their scheme of amalgamation with the high courts.

On Tuesday, Sun Pharma reported better-than-expected numbers for the first quarter ended June 30 despite a disappointing performance from its US subsidiary Taro.

Shanghvi said the company expected a sales growth of 15 per cent this fiscal.

During the period, net sales from operations stood at Rs 3,927 crore, a growth of 13 per cent over the same quarter last year. Net profits stood at Rs 1,391 crore against a loss of Rs 1,276 crore. The loss was on account of a provision of over Rs 2,500 crore towards settlement for a patent infringement litigation in the US.

Branded generic sales in India were at Rs 992 crore, a rise of 17 per cent over the same period last year, while finished dosage sales in the US stood at $389 million, a growth of 7 per cent.

 
 
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