Sun Pharmaceuticals on Monday agreed to buy Israel’s Taro Pharmaceutical Industries for $454m as the Indian group moves to gain a stronger foothold in the US, the world’s largest generic drug market.

The deal values Taro’s equity at $230m, or $7.75 per share, representing a 27 per cent premium to its closing price last Friday of $6.10. Sun will also take on $224m of Taro’s debt.