The Board of Directors of Sun Pharmaceutical Industry Ltd approved the swap ratio for the proposed merger of the Phlox Pharma at 790:1. This will result into issue of approximately 29,750 equity shares of SPIL. This is subject to approval of the Board for Industrial & Financial Reconstruction (BIFR), National Company Law Tribunal (NCLT) and other statutory authorities. Phlox Pharma is engaged in manufacturing cephalosporin bulk active.

Phlox Pharma's equity paid up equity capital stood at Rs 23.47 crore. The company's 37 MT capacity plant is located at Baroda Dist in Gujarat. Phlox holds a European DMF for cefuroxime axetil amorphous. Phlox had earlier filed a reference with the BIFR as a sick company.

Sun Pharma is ranked 5th among all Indian pharma companies with a 3.15 per cent market share (IMS -ORG Retail Chemist Audit, June 2004). The company has used a number of acquisition opportunities to propel growth in the last decade, including the acquisition of a bulk active plant in Ahmednagar from Knoll Pharma, the acquisition of bulk manufacturing companies Pradeep Drugs and Gujarat Lyka Organics.

In the domestic market the company is a leader in niche therapy areas such as psychiatry, neurology, cardiology, diabetology, gastroenterology, orthopedics, with a rank among the top 3 companies (CMARC Mar- June 2004).