Sun Pharma to invest $20 m in US consolidation

Sun Pharma plans to invest $20 million over four years in its recently acquired companies in the US. The investment is aimed at starting operations at these plants.

A senior company executive said the company would invest $5 million annually for the next four years. The investment is meant for registration of products and re-approval in line with the existing US law.

According to US rules, a drug manufacturing plant has to get fresh approval in case of change in management as well as production lines.

Sun Pharma last year bought three manufacturing plants "� the Ohio unit of Valeant Pharma and two facilities of Able Labs at Cranburry "� for nearly $30 million. The acquisitions also included products in the market as well as the R&D assests.

Sun Pharma had invested $23.15 million for the R&D assets and two manufacturing units of Able Labs, which were auctioned recently and another $10 million for the Valeant facilities at Ohio and Hungary.

Able Laboratories is a developer and manufacturer of generic pharmaceutical products in tablet, capsule, liquid and suppository dosage forms.

Sun Pharma, targeting a big chunk of international business from the US, expects these newly acquired facilities and products to help achieve this objective by in three-four years, said a senior company executive.

The company, which has a US subsidiary "� Caraco Pharma Labs, is now scouting for some other big-ticket acquisitions in the US to enhance its presence in the US generic market. Sun Pharma had raised $450 million through FCCB in 2004.