The Hindu Business Line : Sun Pharma looking at acquisition in US

Sun Pharma has invested about Rs 60 crore in infrastructure and equipment in the R&D centre , a company official said. An additional Rs 50-crore worth of equipment had also been shifted to the new research centre

Baroda , Dec. 15

AN overseas acquisition is on the radar for Sun Pharmaceutical Industries Ltd.

The Mumbai-based company is combing the US market to acquire a company similar to its Detroit-based subsidiary, Caraco Pharm Labs.

The $350-million FCCB issued recently by the company is primarily for an acquisition in the US and Sun Pharma would look at companies similar to or "bigger than Caraco", Sun's Chairman and Managing Director, Mr Dilip Shanghvi, said.

In the last six months, there has been 40 per cent erosion in the value of companies in the US market and a further correction is expected, he added.

Mr Shanghvi was speaking to mediapersons at the company's new research and development facility in Baroda that was inaugurated by the President, Dr A.P.J. Abdul Kalam, on Tuesday.

Sun Pharma first struck an alliance with Caraco in 1997. It currently holds about 64 per cent equity in Caraco, a generic company that manufactures and markets generic drugs and private label prescription drugs. Caraco has clocked about $44 million in the nine-month period ending September 2004, a company official said.

Sun Pharma and Caraco's combined sales are an estimated Rs 1,124 crore for the year ended March 2004.

Meanwhile, Sun Pharma has invested about Rs 60 crore in infrastructure and equipment in the R&D centre , a company official said. An additional Rs 50-crore worth of equipment had also been shifted to the new research centre, from its previous research site, she added. About 325 scientists work at the new research centre. Elaborating on the areas of focus for the new research centre, he said that Sun would look at innovative products in allergy, asthma and anti-inflammation segments. The company has a promising drug molecule in the Phase I stage of clinical trials, he said, unwilling to divulge the segment it would target.

Sun is also looking at acquisition opportunities in the fermentation segment, although not actively pursuing it, he said.

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