Sun Pharma to consolidate US operations; invests in Japanese dermatology business

By PharmaCompass

2018-11-29

Impressions: 580 Article

Indian drug major Sun Pharmaceutical Industries is consolidating operations of two plants in the US to cut costs. This is being seen as fallout of increased competition in the US generics market, which is shrinking margins of drug makers.

“Sun Pharma is consolidating its manufacturing operations at New Brunswick and Cranbury into one location, New Brunswick,” a company spokesperson said in a statement. “As part of this process, the operations at Cranbury, including inventory, products, manufacturing and lab equipment, are being transferred to New Brunswick. The restructuring is aimed at optimizing our manufacturing operations and improving cost efficiencies in the increasingly competitive US market.” According to a WARN notice filed with the state, the consolidation will cost 96 jobs.

Several generic drug players have been affected by reduced margins in the US and companies like Teva, Novartis and others are looking to unload plants and portfolios. In September, Novartis unloaded about 300 Sandoz products and several development projects in its Sandoz US generic oral solids and dermatology business to Aurobindo Pharma for US$ 900 million upfront and up to US$ 100 million in performance payments.

Meanwhile, Sun Pharma has entered into a definitive agreement to acquire Pola Pharma, a Japanese drug company engaged in research and development, manufacture, sale and distribution of branded and generic products in Japan. The portfolio of Pola Pharma primarily comprises dermatology products. The transaction is expected to close on or before January 31, 2019, subject to completion of closing conditions.

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