Sun Pharmaceuticals proposes share swap with Phlox Pharma

Chennai: The board of speciality drug major Sun Pharmaceutical Industries Limited has proposed a swap ratio of 1 share (face value Rs5) for every 790 shares (face value Rs10 but only Re1 paid up) of Phlox Pharma for merging the later with itself. The paid up equity of the closely held Phlox Pharma manufacturing cephalosporin bulk active is Rs234.7 million. The company has an income of Rs12 million from operations.

The swap ratio when approved by Board for Industrial & Financial Reconstruction (BIFR) and National Company Law Tribunal (NCLT) would result in the issue of 29,750 equity shares by Sun Pharma.

Meanwhile Sun Pharma has posted a profit of Rs750.6 million for the first quarter of this fiscal, with sales of Rs2,698.3 million and a total income of Rs3,233.2 million..

With the central government deciding to infuse funds into Hindustan Antibiotics Limited, Sun Pharma has put a stop to its plans to acquire the public sector company. Sun Pharma has shelved its plans to raise money issuing foreign currency convertible bonds (FCCB). According to Sun Pharma the first phase of the new 16-acre research and development (R&D) campus in Baroda with two lakh sq.ft research floor area has commenced operations this year. The Mahakali R&D centre was commissioned this year with space for 150 scientists and focus on projects for the US / Europe. The company commissioned its new Jammu facility this year while its new Dadra unit is fully operational. These plants have been formed as a partnership between Sun Pharma (95 per cent stake) and Sun Pharma Key Employees Benefit Trust (5 per cent).

The company"s first joint venture manufacturing unit in Bangladesh, spread over 25,000 sq ft., is close to being commissioned.