Sun, Phlox merger get approval

Shareholders of the Vadodara-based Sun Pharmaceutical Industries Ltd (Sun Pharma) have approved the scheme of amalgamation of Phlox Pharmaceuticals with Sun Pharma on Monday.

This paves the way for Sun Pharma formally acquiring assets of Phlox Pharma, as the Gujarat High Court had asked shareholders of Sun to approve the scheme of amalgamation.

An official of Sun Pharmaceuticals Industries Ltd (SPIL) said that the unit of Phlox Pharma will be used to manufacture formulations - both tablets and injections - for the regulated markets. The plant is presently being run by Sun Pharma.

On Monday, Sun Pharma also set the ball rolling to acquire assets of Halol based M J Pharma. Sun Pharma had made investments in M J Pharma in 1996 to use the latter's formulations manufacturing facility, that is approved by several international regulatory bodies.

The Halol unit has approvals of MHRA, UK, USFDA and South Africa MCC and was being used by Sun Pharma as a contract manufacturing site.

The Gujarat High Court earlier directed to hold separate meetings of the equity shareholders of both the companies, preference shareholders of Sun Pharmaceutical Industries Limited and unsecured creditors of Phlox Pharmaceuticals Limited.

In July last, the swap ratio of one equity share of SPIL to 790 shares of Phlox Pharma was approved by SPIL.

Phlox Pharmaceuticals Limited was originally registered on 21 April, 1995 under the Companies Act, 1956 as public limited company in the name of Parekh Laboratories Limited.

The company was issued the certificate for commencement of business in June 1995 and subsequently the name was changed from Parekh Laboratories Limited to Phlox Pharmaceuticals Limited, having its plant at Vadodara.

Its accumulated losses as on September 30, 2002 stood at Rs 25.18 crore which resulted in erosion of 100 per cent net worth of the company.

For the nine months ended December 31, 2004, SPIL posted a total income of Rs 989.65 crore, as against a total income of Rs 809.85 for the corresponding period of the previous year.