FDAnews Drug Daily Bulletin

Generic drugmaker Sun Pharmaceutical Industries has entered into an agreement to acquire Taro Pharmaceutical Industries. The move marks the first time a multinational firm based in India has invested in an Israeli company, according to Taro.

The transaction, worth a total of $454 million, is subject to Taro shareholder and regulatory approval, according to Sun.

Taro, which has subsidiaries in the U.S. and Canada, focuses on topical and dermatological products, Sun noted. The company has received FDA approval for more than 100 generic products. Most recently, Taro announced it has won tentative approval for a generic version of sanofi-aventis’ Penlac, topical treatment for fungal infections of the nail.

“This is a good opportunity for Sun and Taro to work together to create increasing value and add a complimentary multinational organization to Sun’s business,” Dilip Shanghvi, chairman and managing director of Sun, said. “We intend to build on Taro’s expertise in dermatology and pediatrics, along with specialty and generic pharmaceuticals and over-the-counter products.”

Two Taro shareholders, Franklin Advisers and Templeton Asset Management, had filed a motion in the District Court in Tel-Aviv, Israel, requesting a temporary injunction against the acquisition, according to the companies. The court ruled not to issue the injunction, Taro reported.