Daiichi Sankyo said today it has sold off the 8.9% stake in Sun Pharmaceutical Industries it inherited when Sun Pharma agreed to buy Ranbaxy from Daiichi Sankyo last year.
Daiichi Sankyo raised $3.2 billion through the sale, according to Bloomberg News, which cited an unnamed “person with knowledge of the matter” because the amount raised is considered private information. Daiichi Sankyo sold all of the nearly 215 million shares it owned as of April 16 at about Rs. 931.6 (about $14.80) apiece, Bloomberg reported.
Daiichi Sankyo said it will not disclose the effect of any gain or loss from its sale of Sun Pharma shares on the Indian stock exchanges until it releases its results for the fiscal year ending March 31 on May 14.
The $3.2 billion said to be raised would be the same amount as the purchase price when Sun agreed last year to buy Ranbaxy from Daiichi Sankyo last year—a deal that closed March 25 of this year.
That deal ended Daiichi Sankyo’s six years of efforts to turn around Ranbaxy—efforts derailed when Ranbaxy agreed in 2013 to pay the FDA $500 million to settle agency allegations of violating safety and record-keeping rules. The agency had imposed a ban on importing to the U.S. ingredients from four of Ranbaxy’s plants where FDA had raised issues about product quality.
In a statement yesterday, Daiichi Sankyo said it decided to sell off all or part of its Sun Pharma shares following a review “from the perspective of the improvement of corporate value.” Despite the sell-off, Daiichi Sankyo stated, its existing business partnership with Sun Pharma will remain unchanged.
Investors responded by touching off the biggest one-day loss in the value of Sun Pharma shares in five years. Their value on the Bombay Stock Exchange fell 9% today to Rs. 951.60 ($15.11) at the close of trading.