Sun Pharma US consolidates operations, sells 2 plants
business Updated: Jun 07, 2016 05:55 IST
MUMBAI: India’s largest drug maker Sun Pharmaceutical Industries is selling two units in Philadelphia and Aurora to Frontida BioPharm as it looks to consolidate its manufacturing facilities in the United States.
While the company didn’t disclose financial terms and conditions of the deal, it is unlikely to have any material impact on Sun Pharma’s consolidated financials. “As a part of manufacturing consolidation in the US, one of its wholly owned subsidiaries has entered into an agreement with Frontida BioPharm for divestment of its two oral solid dosage manufacturing facilities,” it said.
The move is in the backdrop of increasing competition and pricing pressure faced by Sun P harm a and others in the US market. US business accounts for around half of Sun Pharma’s sales. The company had recently guided for a 8-10% sales growth in 2016-17, much lower than the analysts expectation of around 20%.
As a part of the latest deal, Frontida will continue manufacturing certain products for Sun Pharma at the two facilities on contract for a certain period and also offer employment to all production, quality, and administrative personnel.
In a similar move in December 2015, Sun Pharma had sold its manufacturing facility in Ohio to Nostrum Laboratories.
First Published: Jun 07, 2016 05:55 IST