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US: Sun Pharmaceutical sells two facilities in to consolidate manufacturing

By  |  June 6, 2016

Sun Pharmaceutical Industries said it has agreed to sell two of its oral solid dosage facilities in the US along with 15 products to Frontida BioPharm for an undisclosed amount, as India’s largest drug maker looks to consolidate manufacturing in its largest market.

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    The deal comes at a time when Sun Pharma and its rivals are facing significant pricing pressure in the US Further, Indian drug makers are reeling under increased scrutiny from the US Food and Drug Administration, after the regulator flagged a series of safety lapses and quality control issues at their local manufacturing plants. Sun’s US sales, which accounts for half of its total revenue, have also been affected by supply constraints and delayed product approvals due to ban on some of its plants in India.

    As part of the deal, Frontida has agreed to continue manufacturing certain products for Sun Pharma at the Philadelphia, Pennsylvania, and Aurora, Illinois facilities on a contract basis for a pre-determined period, the company said in a statement to exchanges on Saturday without disclosing any financial terms.

    Sun Pharma said Frontida, a contract drug development and manufacturing company based in the US, has also agreed to offer employment to all production, quality and administrative personnel at the sites.

    Full Content: Asia Review

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