Sun Pharma scouts for pharma firm in US

Sun pharmaceutical Industries Limited is on the prowl. The pharma major is looking for an opportunity to takeover a pharma company with best possible synergy in the US. The pharma major has kept aside funds raised through for the proposed takeover in the US market.

Sailesh Desai, whole time director, Sun Pharma told Business Standard that the company has spent hardly around 20 per cent of the US$350 raised through FCCB route and the balance has been kept aside to invest in proposed take over in the US market.

Sun pharma has presence in the US generic market through a subsidiary, Caraco Pharma Labs with manufacturing facility in Detroit.

Caraco was turnaround by Sun pharma with $2.3 million of turnover in the year 2000 to $83 million turnover by March 2006. Sun pharma's US company has 23 ANDAs from this USFDA approved site in Detroit.

Caraco sources API for some of its approved ANDAs from Sun Pharma's USFDA approved bulk active plants in India. Across Caraco and Sun Pharma's site in India, 50 ANDAs await approval.

Talking about its R&D business Desai said Sun Pharma also plans to list its recently demerged research and development (R&D) business as separate subsidiary at BSE before the end of calender year 2006.

"The R&D unit is expected to make money from the second year of its operations," said Desai.

Desai said Sun pharma share holders will get 100 shares of demerged R&D company against 100 shares of Sun Pharma shares.

Sun is one of the few companies with an investment of over Rs 700 crore or nearly 12 percent of revenues of the company. It has Sun Pharma Advanced Research Center loacted at Baroda in central Gujarat has 16 acre campus.

For the longer term, the R&D centre has identified three therapy areas where an analogue based approach is being taken by the centre.