Sun Pharma To Pump $3.5M Into Caraco

India's Sun Pharmaceuticals will pump an additional $3.5 million intothe US-based Caraco Pharmaceutical Laboratories, and is to receive stock in the firm in return for its technology on a range of 20 generic drugs, according to a report in India's Financial Express.

Sun is awaiting clearance from the Reserve Bank of India on the final agreement with Caraco, which incorporates some minor alterations of the draft. Dilip Shanghvi, Sun's managing director, told the newspaper that his company was also evaluating the feasibility of establishing a subsidiary in Moscow, Russia.

In 1996, Sun Pharmaceuticals and Caraco signed non-binding letters of intent, under the terms of which Sun made an investment of $4 million in Caraco. Sun's total investment in Caraco will now go up to $7.5 million, and the firm is expected to have a significant representation on Caraco's seven-member board.