Sun Pharma Arm To Commence Distribution Of Formulation Products In India
Sun Pharmaceutical Industries Ltd. said its wholly owned subsidiary Sun Pharma Distributors Ltd. will commence distributing its formulation products in India from this month in a phased manner on the same terms as was with Aditya Medisales Ltd.
This phased transition is expected to be fully completed by the first quarter of 2019-20, Sun Pharma said in an exchange filing.
"The above-mentioned transition and consequential one-time reduction in sales and profit will impact Sun Pharma's financial results for the period ended March 31, 2019," it added.
It said "Atlas (Atlas Global Trading) has completed assignment of its business rights and obligations, including those arising from the supply contract with Sun Pharma to a wholly owned subsidiary of Sun Pharma”.
This has no material impact on the profit or loss for the year ended March 31, Sun Pharma said.
In January, Sun Pharma had announced that distribution related to the company's India domestic formulations business shall be transitioned from Aditya Medisales to its wholly-owned subsidiary.
It had also announced the settlement of a transaction amounting to Rs 2,238 crore with Atlas Global Trading — with which it had a supply agreement — that had arisen out of a patent litigation settlement over Protonix.
Shares of Sun Pharmaceutical Industries closed at Rs 462.10 apiece on the BSE, down 0.13 percent from the previous close.