On Monday, December 17, Sun Pharmaceutical Industries announced that its wholly-owned subsidiary Caraco Pharmaceutical Laboratories had reached an agreement to buy a part of the generics business of US-based URL Pharma, owned by Japanese drugmaker Takeda Pharmaceuticals.
Sun Pharma officials did not share details of the deal. But some indication of its size could come from the price Takeda paid for URL. In June, Takeda announced that its wholly owned subsidiary, Takeda America Holdings, Inc., had completed its acquisition of URL Pharma, Inc. for an upfront payment of $800 million. The deal with Sun Pharma may not be of the same value considering that Takeda is not selling Colcrys (colchicine), URL Pharma's leading product and an important therapy for the treatment and prevention of flares associated with gout.
A Sun Pharma release says: "Upon completion of the purchase, the non-Colcrys generic assets of URL Pharma will be owned and managed by Caraco. The deal is subject to satisfaction of customary closing conditions, including applicable regulatory approvals."
Without giving any details, a Sun Pharma spokesperson described the deal as "moderately-sized" and said it would add to Caraco's US generics business.
Set up in 1983 and listed since 1994, Sun Pharma, headquartered in Mumbai, manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, the US and several other markets. In India, the company is a leader in the niche therapy areas of psychiatry, neurology, cardiology, nephrology, gastroenterology, orthopedics and ophthalmology.
News of the deal emerged after trading hours on the bourses. Sun Pharma shares ended at Rs 720 on the Bombay Stock Exchange on Monday, rising 0.47 per cent.