Sun Pharma sells manufacturing unit in US

Terms of deal to sell unit to Nostrum Laboratories undisclosed, but firm says financial impact will be negligible

Don't want to miss the best from Business Standard?

Sun Pharmaceutical Industries has announced divestment of one of its manufacturing plants in Ohio, US to Nostrum Laboratories. The terms and conditions of the deal were not disclosed but the company said the financial impact of the transaction will be negligible.

The Ohio facility was acquired by Sun Pharma in 2005 and is used to manufacture creams and ointments.

Sun Pharma earns about 50 percent of its revenue from the US market. It has eight manufacturing units in the US -seven of them manufacturing finished dosage and one manufacturing active pharmaceutical ingredients.

"As a part of the agreement, the Sun Pharma subsidiary has divested this unit as a going concern along with the employees and related products to Nostrum. During the divestment process, Sun Pharma was aware that the interests of its employees working in the unit were not compromised," the company said in a statement.

In September Sun Pharma announced plans to sell its manufacturing plant in Ireland in order to consolidate its manufacturing footprint. However a deal has to be finalised. The Ireland plant came under Sun Pharma control following its acquisition of Ranbaxy.