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Sun Pharma hikes stake in Zenotech to 57.56%
Photo Credit: Reuters

Sun Pharmaceutical Industries Ltd, India's biggest drugmaker, said on Friday it has increased its stake in Zenotech Laboratories Ltd to 57.56% from 46.85% for Rs 85.5 crore.

The pharmaceutical company subscribed to the Hyderabad-based peer’s shares at Rs 45 apiece in a rights issue, it said in a stock exchange filing.

Sun Pharma and Japan’s Daiichi Sankyo Company Ltd are co-promoters of Zenotech. Daiichi Sankyo’s shareholding fell by nearly two-fifths to 11.28% after the rights issue.

Sun Pharma became a co-promoter of Zenotech following its acquisition of Ranbaxy Laboratories Ltd from Daiichi in 2014.

Zenotech develops and produces generic pharmaceuticals and biological products in the form of injectables and oral solids.

Zenotech’s share price rose 4.92% to Rs 52.20 apiece on Friday.

Sun Pharma, which counts Singapore sovereign wealth fund GIC as one of its investors, posted consolidated operating revenue of Rs 31,578 crore in the year ended 31 March 2017.

The drugmaker has made a number of acquisitions in recent months. In March, Sun Pharma agreed to acquire Canadian pharmaceuticals firm Thallion Pharmaceuticals Inc for around $2 million.

In November last year, it said it would acquire an 85.1% stake in Russian drugmaker JSC Biosintez as part of its strategy to expand in emerging markets. The month before, Sun Pharma agreed to acquire Ocular Technologies from global private equity firm Auven Therapeutics to boost its ophthalmic pipeline.

In March last year, the drugmaker said it would acquire 14 prescription brands from Swiss firm Novartis AG in Japan for $293 million (about Rs 1,950 crore then) in a deal that would help the company establish a strong footprint in the world’s second-largest pharmaceutical market.

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