Sun Pharmaceutical Industries has concluded the acquisition of a controlling stake in Taro Pharmaceutical, after reaching an agreement with the Levitt and Moros families who control more than 45 per cent of the voting rights.
Sun Pharma's units have raised their equity stake in Taro to 48.7 per cent and voting rights to 65.8 per cent, according to reports.
The acquisition is in pursuant to the option agreement entered into in 2007 with Taro's controlling shareholders led by Taro's chairman, Barrie Levitt.
Taro has an established franchise in dermatology and topical products in the US, in addition to generic product offerings in cardiovascular, neuro-psychiatric and anti-inflammatory therapeutic categories along with strategic sales and marketing operations in Israel and Canada.
Sun chairman and managing director Dilip Shanghvi has been appointed as chairman of the board of Taro while Makhteshim Agan Industries former CEO Ilan Leviteh has been appointed as new director of Taro.
Taro has factories in Canada and Israel that manufacture topical creams and ointments, liquids, capsules and tablets dosage forms which complements Sun's current manufacturing and development capabilities for the US.
Shanghvi said that they intend to build on Taro's market presence in US, Israel and Canada and its expertise in dermatology and paediatrics, along with specialty, generic pharmaceuticals, and over-the-counter products.
"Taro's current employees are an important part of our future plans for Taro and we are committed to productive relations with Taro's employees, and maintaining and enhancing Taro's facilities in Israel as well as Canada," Shanghvi said.
"We have tangible plans to increase volume of production and approve further investments in Research and Development in Israel and Canada, specially in delivery systems and complex chemistry."