Rivals are eyeing staff laid off by Sun Pharmaceutical Industries this year as well as current employees worried about job security as the company goes through a detailed reshuffle of operations to absorb Ranbaxy Laboratories, the Economic Times says.
Citing former employees at Ranbaxy and recruiters, the Economic Times has said that at least 2,800 people have left Ranbaxy globally since April 2014, when the $4 billion deal was announced to buy most of the holding of Japan's Daiichi Sankyo in an all-share deal.
The mix of fired and voluntary employees has gone on to work at companies such as Lupin, Mylan ($MYL), Cipla, Aurobindo Pharma and Novartis ($NVS), the Economic Times said, saying that many are in junior to middle-level careers.
Reports this week also suggest some of the employees are headed to China, lured by its domestic generics industry that plays a rival in the manufacture of active pharmaceutical ingredients, though India has more finished drugs sold at home and abroad.
But Sun disputed the figure for attrition since the deal was announced, telling the Economic Times it was "speculation and untrue" and that levels are at the average industry standard along with pay.
In June, an Economic Times story said that about 150 executives had left the company. In August, reporting first-quarter results, India's top drugmaker and fifth largest in generics globally saw net profit plunge 60% as it absorbed costs from the Ranbaxy takeover. But founder and managing director Dilip Shanghvi pledged that integration would eventually bring greater rewards in the next few years.
- here's the story from the Economic Times