NEW DELHI--Daiichi Sankyo Co. plans to sell its stake in Sun
Pharmaceutical Industries Ltd. as it seeks to exit an investment
that soured over seven years.
The century-old Japanese drug firm plans to sell some or all of
its 8.9% stake in Sun Pharma--which it received after selling Sun
Pharma its trouble Indian subsidiary, Ranbaxy Laboratories Ltd.
last April for $3.2 billion in an all stock deal--Daiichi Sankyo
said in a press release.
The stake sale comes seven years after Daiichi Sankyo acquired a
controlling stake in Ranbaxy for $4.6 billion. Sun Pharma completed
the acquisition of Ranbaxy last month.
Ranbaxy began having problems with U.S. regulators for
manufacturing violations soon after Daiichi Sankyo purchased the
firm. Ultimately, the U.S. Food and Drug Administration barred
almost all of Ranbaxy's factories from exporting to the U.S., the
source of its biggest chunk of revenue.
At the time of the sale, Daiichi Sankyo chief executive Joji
Nakayama said the deal would "help accelerate a solution to the
series of problems at Ranbaxy."
Daiichi said in its press release that it would continue its
business relationship with Sun Pharma. The two companies plan to
sell each other's products in emerging markets.
Write to Sean McLain at Sean.McLain@wsj.com
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