India's Sun Pharma looks to exit nonstrategic businesses

India's Sun Pharmaceutical is still trying to digest its $4 billion acquisition of Ranbaxy, and Sun officials said at the company's annual general meeting this past week that it may exit some unidentified "nonstrategic" businesses as it works to combine the two companies, according to a report in the Economic Times.

Dilip Shanghvi

Sun Managing Director Dilip Shanghvi said at the meeting the company expects to "incur certain integration charges in order to generate long-term synergies from the merger," the report said.

While declining to identify the nonstrategic businesses it may shed, Sun recently unloaded two marketing divisions to Strides Arcolab that Sun took on as part of the Ranbaxy deal. The divisions it sold were selling drugs that treat diseases related to the central nervous system, the report said.

Shanghvi added that the overall Ranbaxy deal will increase R&D productivity and bring "synergy benefits" of $300 million by the 2018 fiscal year, the report said.

Shanghvi also told shareholders that the remediation process at the company's Halol site has cut supplies and also affected product approvals. He said fixing the plant will be "a time-consuming process" and said Sun's revenue growth and net profit will be hurt.

Reuters reported in September that Sun's research arm SPARC had approval revoked by the U.S. FDA for an antiseizure drug because of the manufacturing problems at the Halol plant.

- here's the story from the Economic Times
and one from Reuters