FTC approves Sun Pharma’s $4bn Ranbaxy merger

The US Federal Trade Commission (FTC) has given the green light for Sun Pharmaceutical to merge with Indian generic drug maker Ranbaxy for $4 billion.

Approved by the FTC on Friday (January 30), the deal is allowed only if the companies sell Ranbaxy’s arm that produces generic minocycline tablets.

Minocycline is an antibiotic used to treat pneumonia, acne and urinary tract infections.

Without that sale, the FTC said it had feared the merger would be anti-competitive, reducing the number of US suppliers of generic minocycline tablets in three dosage strengths.

India-based drug maker Torrent Pharmaceuticals will now acquire the divested assets from Ranbaxy.

Sun and Ranbaxy announced last April that Sun would be merging with the Indian company. Sun claimed the deal would create the fifth largest generic pharma company in the world.

However, the transaction’s completion was delayed until now. The Securities and Exchange Board of India investigated the deal, suspecting insider trading, but the Competition Commission of India approved it in December.