Sun Pharmaceutical Industries decided to purchase Opiates business by GlaxoSmithKline in Australia. Analysts are interpreting this move as Sun Pharma’s way of making their company name known in the controlled substance niche.
A statement was released by Sun Pharmaceutical Industries which explains how the Opiates business owned by GSK, along with its manufacturing sites located in Latrobe, Tasmania and Port Fairy, Victory, Australia, as well as the portfolio of all opiates products and inventories, will now be a property of Sun Pharma’s subsidiary.
This big move done by Sun Pharma is a clear message of how the company wants to be seen in the controlled substance business.
The business is on its fourth acquisition. Sun Pharma did not reveal any numbers regarding the deal made with GSK Opiates business but analysts are aware of how strategic the location is. Australia being an island state is one of the biggest suppliers of raw materials used in manufacturing narcotics around the globe. This is the very reason why painkillers such as codeine and morphine are obtained straight from Tasmania.
The above reasons are clear indications of why Sun Pharma is keen to acquire the Opiates business. Though they have tried their hand in growing such controlled substance, the attempt is seemed to have not flourished into something significant for the business.
Sun Pharma bought a facility located in Hungary back in 2005 and was developed to manufacture controlled substance active pharmaceutical ingredients. The facility was used to grow poppy from initial stage. After that, a New Jersey site was acquired within the same year but this time to manufacture finished dosages of the controlled substances.
Chattem Chemicals Inc. was acquired by Sun Pharma’s subsidiary in the US in the year 2008. 100% ownership was given to Sun Pharma and the business is used to import narcotic raw material. Of the acquired controlled substance businesses, Chattem Chemicals is the third for Sun Pharma. The acquisition was decided in order for the company to have a more active part in the development of pain management locally in the US.
These series of acquisitions are surely Sun Pharma’s way of getting into the business with more visibility.