Combination of Sun Pharmaceutical Industries Limited and Ranbaxy Laboratories Limited

Combination of Sun Pharmaceutical Industries Limited and  Ranbaxy Laboratories Limited

1. Introduction to the Parties

Sun Pharma is an integrated specialty pharmaceutical company. The key therapy areas are Central nervous system, Dermatology, Cardiology, Orthopaedics, Ophthalmology, Gastroenterology, Nephrology, Etc. It is also inter alia engaged in manufacture and sale of active pharmaceutical ingredients (APIs).

Ranbaxy is a vertically integrated company that inter alia develops manufactures and markets generic, branded generic, over-the-counter (OTC) products, APIs and intermediates. Its areas are Anti-infectives, Cardiovascular, Pain Management, Central Nervous System, Gastrointestinal, Respiratory, Dermatology, Orthopaedics, Nutritionals and urology.

Ranbaxy holds 46.79 % equity in Zenotech Laboratories Limited (“Zenotech”) which is stated to be a pharmaceutical company engaged in development, manufacture and supply of injectible products having portfolio of niche therapies like chemical oncology and biotechnology products from bacterial and mamilian cell-culture.

2. Relevant Market

Relevant market was defined on the level of molecule.

Sr. No.	Relevant Market	Sun Pharma Mkt Share	Ranbaxy Market Share	Combined Mkt Share	Third Competitor
1.	TAMSULOSIN + TOLTERODINE	30-35	60-65	90-95	Intas 5-10%
2.	ROSUVASTATIN + EZETIMIBE	30-35	50-60	90-95	Lupin 5-10%
1.	LEUPRORELIN	35-40	45-50	[85-90]	Bharat Serums with a market share of [5-10].
2.	TERLIPRESSIN	55-60	[5-10]	65-70	Alembic 20-25
3.	OLANZAPINE + FLUOXETINE	40-45	20-25	65-70	Intas 30-35
4.	LEVOSULPIRIDE + ESOMEPRAZOLE	50-55	5-10	60-65	Torrent 35-40
5.	OLMESARTAN + AMLODIPINE + HYDROCLORTHIAZIDE	[30-35]	[5-10]	[40-45]	Macleods [15-20] Micro Labs of [10-15]
6.	OLANZAPINE	35-40	0-         5	35-40	Intas [30-35], Alkem [5-10] % and Micro Labs which has a market share  [5-10]
7.	CLOPIDOGREL	25-30	0-5		Lupin [15-20] %, Torrent [10-15] %, Intas [10-15] %, Cipla [5-10] % and Sanofi [5-10] %.
8.	ATORVASTATIN	10-15%	10-15%	20-25	Zydus [10-15] %, Lupin  [10-15] %, Intas [5-10] %, Abbott [5-10] %, Dr. Reddy‟s [5-10] % and Micro Labs of [5-10] %.
9.	LOSARTAN (NLEM)	15-20	5-10	20-25	Unichem of [30-35] % and Zydus [5-10] %
10.	ALFUZOSIN + DUTASTERIDE	25-30	15-20	40-45	Cipla [35-40] % Dr. Reddy‟s with a market share of [10-15] %
11.	DARIFENACIN	20-25	25-30	50-55	Alembic of [20-25] %, Cipla which has a market share of [10-15] % and Intas which has a market share of [5-10] %.
12.	TROSPIUM	30-35	20-25	50-55	Zydus [30-35] %, Cipla [5-10] % and Ipca [5-10] %.
13.	FLUVOXAMINE	45-50	5-10	50-55	Abbott [20-25] %, Intas [15-20] % and Micro Labs [5-10] %.
14.	VENLAFAXINE	25-30	15-20	40-45	Cipla [30-35] %, Torrent [10-15] % and Intas [10-15] %.
15.	TOLTERODINE	5-10	35-40	40-45	Cipla [30-35] %, Ipca  [10-15] %, Pfizer  [5-10] % and Dr. Reddy of [5-10] %.
16.	ATENOLOL + LOSARTAN	20-25	10-15	35-40	Unichem  [25-30] %, Alembic [10-15] %, Emcure [10-15] % and Micro Labs [5-10] %.

3. Combination is likely to have an appreciable adverse effect on competition in India in the following relevant markets for the formulations containing:

i. Tamsulosin + Tolterodine

ii. Rosuvastatin + Ezetimibe

iii. Leuprorelin

iv. Terlipressin

v. Olanzapine + Fluoxetine

vi. Levosulpiride + Esomeprazole

vii. Olmesartan + Amlodipine + Hydroclorthiazide

S. No.	Relevant Market	Brand owned/in-licensed/distributed by Sun Pharma	Brand owned/in-licensed/distributed by Ranbaxy
1.	Tamsulosin + Tolterodine	Tamlet	Roliflo
2.	Rosuvastatin + Ezetimibe	Rozavel EZ	Rosuvas EZ
3.	Leuprorelin	Lupride	Eligard
4.	Terlipressin	Terlyz	Terlibax
5.	Olanzapine + Fluoxetine	Oleanz Plus	Olanex F
6.	Levosulpiride + Esomeprazole	Sompraz L	Raciper L
7.	Olmesartan + Amlodipine + Hydroclorthiazide	Triolmezest	Triolvance

Table No. 3.1

4. Market without Competition Concerns

1.      Ibandronate

2.      Olopatadine |

3.      Lactitol

4.      Lubiprostone 

5.      Cyclobenzaprine

5. Proposed Remedies

The Commission proposed that:

a. Sun Pharma shall Divest:

i. All products containing Tamsulosin + Tolterodine which are currently marketed and supplied under the Tamlet brand name.

ii. All products containing Leuprorelin which are currently marketed and supplied under the Lupride brand name.

b. Ranbaxy shall Divest:

i. All products containing Terlipresslin which are currently marketed and supplied under the Terlibax brand name.

ii. All products containing Rosuvastatin + Ezetimibe which are currently marketed and supplied under the Rosuvas EZ brand name.

iii. All products containing Olanzapine + Fluoxetine which are currently marketed and supplied under the Olanex F brand name.

iv. All products containing Levosulpiride + Esomeprazole which are currently marketed and supplied under the Raciper L brand name.

v. All products containing Olmesartan + Amlodipine + Hydroclorthiazide which are currently marketed and supplied under the Triolvance brand name.