Sun Pharmaceutical Industries Ltd has sold two oral solid dosage manufacturing facilities in the US to Frontida BioPharm Inc, as part of its consolidation efforts in the region.
India's top drugmaker did not disclose financial details of the deal that it struck through a wholly owned subsidiary.
The company sold the facilities located at Philadelphia and Aurora along with 15 related pharmaceutical products, Sun Pharma said in a stock-exchange filing over the weekend. The impact of this development on Sun Pharma’s consolidated financials and operations is not material, it added.
As part of 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 US company has also agreed to offer employment to all production, quality and administrative personnel at the sites.
This is at least the second asset sale by Sun Pharma within six months. The company had, in December 2015, agreed to sell a plant in the US to Nostrum Laboratories Inc for an undisclosed amount.
While Sun Pharma has been consolidating its US business, it recently entered the prescription market of Japan by acquiring 14 brands from Swiss firm Novartis AG for $293 million.
Sun Pharma, the world’s fifth-largest specialty generic pharmaceutical company, posted a consolidated net profit of Rs 1,714 crore for the quarter ended March 2016 compared with Rs 889 crore a year earlier. Its consolidated income was Rs 7,634 crore for the quarter, up from Rs 6,112 crore a year earlier.
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