Japan set for $4.6bn pharma deal

Pharmaceutical firms are facing rivalry from generic drug companies

Leading Japanese pharmaceutical firm Daiichi Sankyo has agreed to buy a controlling stake in Indian drugs firm Ranbaxy for as much as $4b.6n (£2.3bn).

The Japanese firm is set to buy nearly 35% of the Indian company, which is a leading manufacturer of generic drugs.

The transaction comes as pharmaceutical firms face stiff rivalry from generic drugs firms in developing nations.

Shares in Daiichi Sanky ended almost 5% higher after reports of the friendly deal. Ranbaxy's shares rose 1.5%.

Daiichi said it would buy the 34.8% stake of Ranbaxy currently owned by the Indian firm's founders, the Singh family.

The Japanese firm also said it would make a bid for a further 20% of the firm.

The value of the deal is expected to be worth between $3.4bn and $4.6bn, the firms said in a statement.