Sun Pharma update on transition of its distribution and unwinding of supply contract with Atlas
Capital MarketSun Pharmaceutical Industries announced that with reference to its intent to (a) transition its distribution related to India domestic formulations business from Aditya Medisales ('AML'), the current distributor, to a wholly owned subsidiary of Sun Pharma and (b) unwinding of a transaction with Atlas Global Trading (Atlas), Sun Pharma Distributors, a wholly owned of the company has been incorporated and will w.e.f. April-2019, commence distributing Sun Pharma's formulation products in India, on the same terms as was with Aditya Medisales in a phased manner upon receipt of requisite regulatory approvals. This phased transition is expected to be fully completed by Q1 of FY20.
The above-mentioned transition and consequential one-time reduction in sales and profit will impact Sun Pharma's financial results for the period ended 31 March 2019.
Further, Atlas has completed assignment of its business rights and obligations including those arising from the supply contract with Sun Pharma to a wholly owned subsidiary of Sun Pharma. This has no material impact on the profit or loss for the year ended 31 March 2019.
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