Sun Pharma divests two US manufacturing units

Sun Pharmaceuticals Industries' (SPIL) one subsidiary in US has entered into agreement with Frontida Biopharm Inc. (Frontida) for divestment of two oral solid dosage manufacturing facilities at Philadelphia and Aurora. The company’s divestment in US is a part of manufacturing consolidation process. It also sells 15 pharmaceutical products to Frontida.

Frontida has agreed to continue manufacturing certain products for SPIL at these facilities on a contract basis for a predetermined period. During the sale process, SPIL has ensured the continuous supply of quality products to patients and has been keen on protecting the interests of its employees working in the Aurora and Philadelphia units.

On the financial front, SPIL’s top line has increased by 3.05 per cent to Rs 28270 crore in FY16 on a yearly basis. The company’s EBITDA also has risen by 5.18 per cent to Rs 8482 crore in FY16 as compared to previous financial year. Its bottom line has increased by 3.86 per cent to Rs 4716 crore in FY16 on a yearly basis. SPIL’s 7 new products were commercialised in Q4FY16 and 29 new products were launched during FY16 in the Indian market. Meanwhile, the company’s manufacturing consolidation process has had  no material impact on its financials.

The share price of SPIL has increased by 1.63 per cent on bourses in early trades; and is trading at Rs 746 on an intraday basis.

SPIL provides high-quality, affordable medicines trusted by customers and patients in over 150 countries across the world. The company’s global presence is supported by 47 manufacturing facilities spread across 6 continents. Its footprint across emerging markets covers over 100 markets globally and 6 markets in Western Europe. SPIL’s API business footprint is strengthened through 14 world class API manufacturing facilities across the globe.