Sun Pharma completes acquisition of GSK's opiates business

GSK's two plants in Australia, its opiate product portfolio along with inventory to go to Sun

Sun Pharmaceuticals has completed the acquisition of GlaxoSmithKline's (GSK's) opiates business in Australia, strengthening its active pharmaceutical ingredients (API) and analgesic drug segments. The deal was announced in March and finalised on Tuesday.

Under the deal, GSK's two manufacturing plants in Australia, its opiate product portfolio along with inventory will transfer to Sun Pharmaceuticals.

Poppy derived opiates are primarily used  for manufacturing pain killers. GSK began the poppy business in Australia in 1960s and, today, the country provides for nearly half of the narcotic raw materials used in the pharmaceutical sector. Only about four per cent of Sun's revenue comes from the API segment.

The United States market contributes about 50 per cent of its revenue. The company, however, did not give a break up of its revenue from opiates business and analgesic drug sales in India and overseas markets.

US is the largest market for opiate-based medicines and the top-five pharmaceutical companies control over 60 per cent share in analgesic drugs made from controlled substances. The acquisition in Australia will thus help Sun Pharmaceuticals in improving its product sourcing and help grow analgesics business.

"Sun Pharma now offers a rich basket of opiates product line in addition to a large active pharmaceutical ingredients portfolio and dosage formulations covering a broad range of chronic and acute prescription drugs. The acquisition also brings a specialized team to drive business growth," the company said in a statement today.