Sun Pharmaceuticals has acquired 0.5 million shares of Caraco Pharmaceutical Laboratories, a Detroit-based subsidiary of the company, from an individual stockholder at a price of $9 per share. It is planning to fund this acquisition from internal accruals. With this acquisition, its stake has increased to 63.14 per cent from 61.27 per cent. Earlier, in January 2004, Sun Pharma hiked its holding from 44 per cent to 61.27 per cent at an outlay of $42 million.
Currently, Caraco is engaged in manufacturing and marketing of generic-drugs. It distributes generic drugs and private label prescription drugs to some of the nation’s largest wholesalers, distributors, drugstore chains, healthcare systems and state and federal agencies. Caraco received 6 ANDA approvals during the year 2002 and one more in first quarter of 2003.
Sun Pharma is ranked 5th among all Indian pharma. In niche therapy areas such as psychiatry, neurology, cardiology, diabetology, gastroenterology, orthopedics, Sun Pharma ranks among the top 3 companies. The company has strong initiatives planned in research, with additional 2.50 lakh sq ft of research floor area, 220 scientists to be added, and continuing commitments of $15 mill to R&D for each of the next two years.