Published on : Mar 04, 2015
Global pharmaceutical giant GSK announced on Tuesday that they had come to an agreement with Sun Pharmaceuticals Industries for the latter to buy out the opiates business in Australia owned by GSK.
A joint statement was made by the two pharma top companies. The statement said that the companies’ respective wholly owned subsidiaries had already come to an agreement that was directly linked to the GSK opiates business in Australia.
As stated in the agreement, the opiates business that GSK currently owns in Australia will be transferred to a subsidiary of Sun Pharma. This includes the manufacturing sites in Port Fairy (Victoria) and Latrobe (Tasmania).
GSK’s current product portfolio includes opiate raw materials that are derived from poppy. They are mainly utilized in making analgesics that are used for moderate to severe pain.
According to the statement made, all employees from both sites will be offered employment status by Sun Pharma. They will join an already established footprint of Sun Pharma in Australia.
The transaction will let GSK make its operations more simplified as far as its Australian segment is concerned. GSK spokespersons said that the buyout will let them focus on delivering a more innovative product portfolio that will be critical to GSK’s growth strategy in the country.
There has been no disclosure of the transaction details. It is however expected to be sealed by August. The transaction will be subject to customary closing conditions and requisite regulatory and other such approvals.
Sun Pharma API business Executive Vice President Iftach Seri said that the acquisition is a strategic part of the company’s plan towards creating a stronger portfolio of opiates and also gaining access to better capabilities in the segment.