Sun Pharma divests two units to Frontida BioPharm

Leading Indian drugmaker Sun Pharma (BSE: 24715) says that, as a part of its manufacturing consolidation in the USA, one of its wholly owned subsidiaries has entered into an agreement with Frontida BioPharm for the divestment of its two oral solid dosage manufacturing facilities located at Philadelphia, Pennsylvania, and Aurora, Illinois, both in the USA, along with 15 related pharmaceutical products.

In connection with the transaction, Frontida, part of contract development and manufacturing organizationFrontage Laboratories, 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. Other details of the transaction are confidential. Sun Pharma closed the 2016 fiscal year with total revenues of $4.3 billion, of which $2.1 billion came from the US market.

Commenting on the asset purchase, Song Li, chief executive of Frontida BioPharm and Frontage Laboratories, said: “We are pleased to complete this transaction with Sun and partner with them in manufacturing some of their key products. The sites have great, experienced staff that will serve as a foundation to Frontida’s launch of contract development and manufacturing services. Frontida’s CDMO services will complement the high quality research and development services offered by Frontage Laboratories and provide our long-term clients a trusted partner for product manufacturing and commercial support.”