News

Posted On: 12/27/2005

Sun Pharma's U.S. Arm Acquires Able's Assets

PharmaManufacturing.com

Sun Pharma announced Dec. 23 that it has successfully completed the purchase of dosage form manufacturing operations of Able Labs in the U.S. for $23.15 million by its wholly owned subsidiary company, Sun Pharmaceutical Inc., Michigan.

These assets include ownership and lease rights to manufacturing operations at two sites in New Jersey, with a total of 275,000 sq. ft., including special suites for the manufacture of controlled substances. The purchase also includes intellectual property for the products being marketed by Able until it was required by the U.S. Food and Drug Administration (FDA) to withdraw these in 2005. Sun Pharma will evaluate and revalidate these dossiers and resubmit selected products with the FDA. Upon relaunching, those products are expected to contribute significantly to Sun Pharma’s U.S. generic business.

This is Sun Pharma’s fourth acquisition in the U.S., the other three being the acquisition of Caraco in 1997, the acquisition of two brands from Women’s First Healthcare in 2004, and the purchase of a dosage form plant at Bryan, Ohio in September 2005. Sun Pharma continues to evaluate further acquisition opportunities in the U.S.

Dilip Shanghvi, Sun Pharma’s chairman and managing director said, “The completion of the Able asset purchase significantly strengthens our ability to compete in the U.S. generic space. This plant will allow for a quick product rollout, especially in the controlled substances space. We will be working for a turnaround as we did with Caraco.”

A release issued by Able Laboratories specified that Sun assumed Able's lease at its premises located in Cranbury, N.J., and purchased Able's premises at 6 Hollywood Court, South Plainfield, N.J. In addition, Sun assumed a limited number of the company's contracts.

"Under the bankruptcy court order permitting the sale, Able paid cure amounts for contracts that were assumed and assigned, reserved amounts listed in the order and made other permitted payments," Able's release explained. "It is expected that the remainder of the proceeds will be used to pay, among other things, administrative expenses and other creditor claims. Able currently plans to prepare and file a plan for distribution of its assets and the treatment of claims with the bankruptcy court within the next 45 days."