Sun Pharma Arm Buys 14.

6% Stake in Scpharmaceuticals
A subsidiary of Sun Pharmaceutical
Industries Limited has acquired 14.6 per cent
stake in US-based scPharmaceuticals for 13
million dollars in cash, the Indian company
stated in a stock exchange filing.
scPharmaceuticals is developing a portfolio
of pharmaceutical products for subcutaneous
(under the skin) delivery. The firms lead
products are the first subcutaneous
formulations of furosemide, a diuretic
utilised to treat heart failure and ceftriaxone
which is an antibiotic drug. scPharmaceuticalss proprietary and innovative
products shall be administered subcutaneously via the sc2Wear Infusor. This
avoids material risks and costs related to current delivery options.
scPharmaceuticals was incorporated in the year 2014 and has not reported sales
figures in the last 2 years.
Sun Pharma is enhancing its portfolio of complex generics and specialty products
as the generic drugs business slows in the face of pricing pressure and risen
competition in the US, and regulatory issues at its manufacturing plants.
An analyst said that the company had good cash reserves and so it would
continue to make such acquisition of assets that could turn into good
opportunities going ahead. This was a small acquisition but was in line with its
strategy to build a pipeline of specialty and complex products, he added.

In the 6 months ended September 2016, Sun Pharma posted sales of Rs 15,771 cr,
up 18 per cent from the same period a year ago. Meanwhile, Sun Pharma share
price closed trading at Rs 623.50 on NSE on 23rd December, 2016.

Taro Pharmaceutical:
The American unit of India's Sun Pharmaceutical Industries, Taro
Pharmaceutical, is being sued by its investors for citing false and misleading
statements on fixing the price of generic drugs in violation of US antitrust laws.
The class action suit initiated by the NECA-IBEW Welfare Trust Fund blamed
that Taro and various other pharma companies involved in fixing the price of skin
infection treatment Clobestasol since 2014. The suit, filed on behalf of Taro's
investors, seeks recovery of investor losses. The development comes at a time
when Sun and Taro, and several other drug companies are witnessing an
investigation by the US Department of Justice over the price collusion of nearly
20 drugs. The class action suit was filed after Taro disclosed in September that it
had received a subpoena over its pricing policy
The petition was filed in October, alleges that between July 2014 and September
2016, Taro's executives made materially false and misleading statements on the
company's business as well as operational and compliance policies. Hence, the
shareholders have suffered significant losses and damages, it said.

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Article Written by
Salman Hashmi