Sun Pharma to sell its US manufacturing units to Frontida BioPharm
| 04 Jun 2016
| Vidya Shankar Tiwari, Editor, NOP

Mumbai: Sun Pharmaceutical Industries Ltd, India’s largest drug maker, will sell its two oral solid dosage manufacturing facilities located at Philadelphia and Aurora in the US along with 15 related pharmaceutical products to Frontida BioPharm Inc. for an undisclosed amount.

In connection with the transaction, Frontida has agreed to continue manufacturing certain products for Sun Pharma at these facilities on a contract basis for a predetermined period, the drug maker said in a statement on Saturday.

Frontida has also agreed to offer employment to all production, quality and administrative personnel at the sites.

“During the divestment process, Sun Pharma was cognizant about ensuring the continued supply of quality products to patients and protecting the interests of its employees working in these units,” Sun Pharma said adding that the impact of this development on Sun Pharma’s consolidated financials and operations is not material.

Last week, Sun Pharma said its US arm had received a summons from the antitrust division of the US department of justice, requiring it to appear before a grand jury there.

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The company did not elaborate on the reasons for the summons.

“One of the company’s US subsidiaries, Sun Pharmaceutical Industries Inc. (SPII), has received a grand jury subpoena from the United States Department of Justice (DoJ), anti-trust division,” the company had said in a BSE filing.

DoJ has sought documents from SPII and its affiliates relating to corporate and employee records, generic pharmaceutical products and pricing, communications with competitors and others regarding sales of generic pharmaceutical products and certain other related matters.

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