Sun Pharma Sells US Plants to Frontida
Sun Pharma, India’s largest drugmaker, is selling two oral solid dosage manufacturing plants in the US, as well as 15 related (undisclosed) pharmaceutical products, to Frontida BioPharm. The sale is part of the company’s plans to consolidate its manufacturing presence in the country. The plants are located in Philadelphia, Pennsylvania, and Aurora, Illinois.
Sun Pharma said the impact of this development on its consolidated financials and operations was not material. Financial details were not revealed. Frontida has agreed to continue manufacturing certain products at the facilities for Sun Pharma on a contract basis for a predetermined period. This is Sun Pharma’s second divestment in the US in the past six months. Last December, the company sold its manufacturing plant in Bryan, Ohio, to Nostrum Laboratories.
The US accounts for nearly half of Sun Pharma’s $4.3 billion revenue but business has been affected by pressure on prices and consolidation in the supply chain. The company is also reported to be looking to sell facilities and business units that were part of Ranbaxy, which it acquired in August 2014. Two divisions of Ranbaxy’s central nervous system business were sold to India’s Strides Shasun in February this year, following anti-trust clearance.
In April this year, Sun Pharma agreed to pay $293 million to Novartis for a portfolio of 14 prescription brands that have combined annualized revenues of about $160 million.
