Sun Pharma divests two US sites to Frontida

MUMBAI: A wholly owned US subsidiary of Indian drug maker Sun Pharma has agreed to divest two oral solid dosage manufacturing facilities to Frontida BioPharma The facilities, located at Philidelphia and Aurora, will move to Frontida along with 15 pharmaceutical products, Sun said in a June 4 announcement but did not disclose the deal value, product details or sales, noting the details of the transaction are confidential.

Sun, which closed FY 2016 with total revenues of $4.3 billion, of which $2.1 billion came from the US market, said the deal forms part of its manufacturing consolidation.

In connection with the transaction, Sun said, Frontida has agreed to continue manufacturing certain products for Sun Pharma at these facilities on a contract basis for a predetermined period.

It has also agreed to offer employment to all production, quality and administrative personnel at the sites.

During the divestment process, Sun Pharma was cognizant about ensuring the continued supply of quality products to patients and protecting the interests of its employees working in these units.
The impact of this development on Sun Pharma’s consolidated financials and operations is not material.