 "Sun Pharma sells two manufacturing plants in US to Frontida BioPharm")
India’s largest drug maker Sun Pharmaceutical Industries on Saturday announced it was selling its two oral solid dosage manufacturing plants in the US to Frontida BioPharm Inc.
The sale is a part of the drug maker’s plans to consolidate its manufacturing facilities in the US. “The impact of this development on Sun Pharma’s consolidated financials and operations is not material,” the company said. The plants are situated in Philadelphia and Illinois states.
“Frontida has agreed to continue manufacturing certain products for Sun Pharma at these facilities on a contract basis for a predetermined period. It has also agreed to offer employment to all production, quality and administrative personnel at the sites,” it added.
This is Sun Pharma’s second divestment in the US in the last six months. In December, the company divested its manufacturing plant in Ohio state to Nostrum Laboratories.
Sun Pharma, which earns about half of its revenue from the US, indicated that its business in the market has been impacted due to pricing pressure and supply channel consolidation.
It has already indicated that it is also exiting certain low margin products which have impacted its sales on a year-on-year basis.
The company is also looking to sell facilities and business units from the Ranbaxy portfolio. Last September, it put a plant in Ireland on block to optimise its overall manufacturing base. Last year it also sold central nervous system business (of erwtshile Ranbaxy) to Strides Shasun for Rs 165 crore.
The sale is a part of the drug maker’s plans to consolidate its manufacturing facilities in the US. “The impact of this development on Sun Pharma’s consolidated financials and operations is not material,” the company said. The plants are situated in Philadelphia and Illinois states.
“Frontida has agreed to continue manufacturing certain products for Sun Pharma at these facilities on a contract basis for a predetermined period. It has also agreed to offer employment to all production, quality and administrative personnel at the sites,” it added.
This is Sun Pharma’s second divestment in the US in the last six months. In December, the company divested its manufacturing plant in Ohio state to Nostrum Laboratories.
Sun Pharma, which earns about half of its revenue from the US, indicated that its business in the market has been impacted due to pricing pressure and supply channel consolidation.
It has already indicated that it is also exiting certain low margin products which have impacted its sales on a year-on-year basis.
The company is also looking to sell facilities and business units from the Ranbaxy portfolio. Last September, it put a plant in Ireland on block to optimise its overall manufacturing base. Last year it also sold central nervous system business (of erwtshile Ranbaxy) to Strides Shasun for Rs 165 crore.