Ranbaxy Laboratories’ Staff Get Pay-Cut Shield In Sun Pharmaceutical Industries Ltd Buyout
October 20, 2014
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Indian drugmaker Sun Pharmaceutical Industries’s acquisition of Ranbaxy Laboratories provides for a year's 'cooling period' during which the pay of Ranbaxy employees cannot be lowered, the Business Standard reported Monday.
Sun Pharma bought the unit from from Daiichi Sankyo for $4 billion earlier this year. Under the terms of the agreement, Ranbaxy is rumored to have budgeted around Rs 65 crore (or $640 million) for retention bonuses for 70-75 executives.
Sun executives declined to corroborate the report.
"It is not possible for us to comment on specifics of the agreement or any steps that Ranbaxy may have taken towards employee retention. These are questions that should be posed to them," the company told the paper.