Analysts estimate that recent deals in the sector have led to

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Mergers are seen as one way to improve efficiencies. Analysts estimate that recent deals in the sector have led to savings of about 8 percent of sales.The deal relieves Daiichi Sankyo of a troubled subsidiary that has diverted resources and weighed on profits at a price.Under the deal, expected to close by year end, the Japanese company will end up with a stake of about 9 percent in Sun Pharma valued at about $2 billion, compared with the $4.2 billion it paid for a 63.9 percent stake in Ranbaxy in 2008.»Given Ranbaxy’s problems cheap jerseys, I’m sure Sun would have spent some time doing their homework on this issue,» Sujay Shetty, pharmaceuticals leader for PricewaterhouseCoopers in India told Reuters. «To me, as a layman, it’s not obvious that it is going to go away just now, but maybe Sun probably has assessed it to be something they can get on top of.»Daiichi Sankyo Chief Executive Joji Nakayama said Daiichi had learnt a lot about emerging markets through its relationship with Ranbaxy and saw those lessons as valuable for its further global expansion.

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