The Hindu Business Line : Sun Pharma bids for US co Able Labs' assets

According to a filing by Able to the Securities and Exchange Commission, Sun Pharma will pay $23.15 million for the assets, which were auctioned recently. A Sun Pharma spokesperson told Business Line that the deal was yet to be closed.

Able Laboratories is a developer and manufacturer of generic pharmaceutical products in tablet, capsule, liquid and suppository dosage forms. According to information on the company's Web site, in May 2005, Able suspended manufacturing and distribution of its entire product line.

The company currently is not generating income or revenue, because of its suspension of manufacturing operations and product recalls. The company has filed a petition to reorganise under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the District of New Jersey, Trenton Division on July 18, 2005.

Aurobindo Pharma was also in the race and its bid was the second highest and best, according to information available on SEC's Web site.

Agency reports citing information from the SEC filing said the sale includes a lease for Able Drive — the company's premises in New Jersey, some contracts and another property in New Jersey.

For Sun Pharma, this would be the second asset purchase in the US in the recent past. In September, Sun Pharma bought US-based Valeant Pharma's manufacturing operations in Ohio at an undisclosed price. This is in addition to existing assets that Sun Pharma has in the US through its subsidiary Caraco Pharma Labs.

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