Mumbai, (IANS) Drug major Sun Pharmaceutical Industries Ltd on Monday admitted that its consolidated revenue and profit for fiscal 2015-16 would be impacted by its integration with Ranbaxy Laboratories it bought for $3.2 billion last year.
“Post-acquisition, integration of Ranbaxy with our operations will adversely impact our overall revenues and profits for FY2016 due to expenses/charges arising out of it (integration),” Sun said in a statement here.
Sun bought the Indian multinational drug maker Ranbaxy from Daiichi Sankyo of Japan after nearly a year-long acquisition process that began in April 2014 and completed in March this year.
“As we expect to incur integration charges, consolidated revenue and profits will remain flat or decline over last fiscal,” the statement said.
The integration will generate long-term synergies from the merger though the company may discontinue non-strategic businesses.
“We have embarked on consolidation initiatives to drive growth and profitability by investing for future. We continue to strengthen and build leadership position in key markets and business segments,” Sun said in the statement.
The company has upped the target for the synergy benefits by 15-20 percent from its earlier target of $250 million by fiscal 2017-18.