Ranbaxy, India's No 1 drugmaker by sales and 63.4 percent held by Daiichi Sankyo Co Ltd, is banned from exporting drug ingredients to United States, while Sun Pharmaceutical's Karkhadi plant is also barred from shipping products by US Food and Drug Administration.

Sun Pharmaceutical said Ranbaxy shareholders will get 0.8 Sun Pharma shares for each Ranbaxy share. It added that the merged company will become the world's fifth-largest specialty generics company and the largest drug firm in India.

Daiichi Sankyo said in a statement that it will hold about a 9 percent stake in Sun Pharmaceutical after the deal, which has been agreed to by the boards of both companies.

In a separate statement, Daiichi Sankyo said US Attorney's Office in New Jersey had issued an administrative subpoena to Ranbaxy seeking information related to the company's Toansa plant in India. Ranbaxy is cooperating with the information request.

Shares in Daiichi Sankyo climbed as much as 4.1 percent to a 2-1/2 month high of 1,827 yen in early Monday trade, outpacing a 1.2 percent decline in the benchmark Nikkei.


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