One year ago, India's Sun Pharmaceutical had signed an agreement to acquire Taro Pharmaceutical Industries for $454 million. The latter company is a US-based generic drug maker and, after many delays in the acquisition, Taro finally terminated the deal altogether.
The Indian company's loss is being compared to the MTN-Bharti merger that recently fell through. Sun Pharma is one of the largest Indian drug manufacturers and this latest merger would have been a boon for the growing company. Taro's decision is reportedly based on the company's financial turnaround in the past year. Apparently, Taro's advisors at Merrill Lynch also recommended that the company back out of the deal.
Taro has reported a profitable quarter -- the third in a row. It would seem that the company doesn't need Sun Pharma anymore. Where does this leave Sun? Since the deal was conditional from the beginning, the larger company has no legal recourse in this case. Sun will walk back into the sunset, tail placed firmly between legs…
By Heather Johnson.
Heather is a regular commentator on the subject of CNA Programs. She welcomes your feedback and potential job inquiries at heatherjohnson2323 at gmail dot com.