MUMBAI: Fortis Healthcare executive chairman Malvinder M Singh, who had sold his stake inRanbaxy to Japanese pharma company Daiichi Sankyo in 2008, says Sun Pharma will do a better job in sorting out the regulatory mess at the company, while Daiichi Sankyo failed to harness and assimilate the complexities of running a strong generics business. Excerpts from an interview:
What was your first reaction when you heard about the deal?
This is definitely a positive development for Ranbaxy, Sun and the entire Indian generics industry.
What’s your view on the valuation? Do shareholders get a fair deal?
Ranbaxy’s intrinsic value is far greater than is reflected in the transaction. Ranbaxy is a great company and Sun, with its experience and understanding of the generics space, should be able to unlock the true potential and value in Ranbaxy. This unfortunately did not happen under Daiichi Sankyo, which failed to harness and assimilate the complexities of running a strong generics business.
How is the generics space likely to evolve?
I continue to believe that there will be more consolidation in the generic space both in India and overseas. This trend will intensify as pharmaceutical companies try and achieve scale and extract greater value from their operations by enhancing their product portfolio, market reach, research & development and manufacturing capabilities.
How will the deal change the Indian pharma market landscape?
The Indian pharmaceutical industry has matured greatly and is today well regarded for its capability and high quality of products that are being made available to patients at affordable prices. The scale, size and capability of these operations make the Indian generics industry a formidable force and a strong partner that can bring about substantial savings in the healthcare spends of countries, curtailing rising cost while expanding access to much needed medication. For these reasons alone it will be very difficult for countries to ignore the sterling contribution of the Indian generics industry in alleviating global health.