MUMBAI - Sun Pharmaceutical Industries has begun selling off its facilities, as it looks to rationalize its production network and bring down costs following its purchase of rival Ranbaxy Laboratories earlier this year.
The company has put on the block its formulation plant at Cashel in Ireland, which it acquired from Ranbaxy as part of the $4 billion buyout in March.
India's largest drugmaker is in the process of integrating Ranbaxy's operations while working to resolve problems at Ranbaxy plnats in India. The US Food and Drug Administration has banned medications produced by Ranbaxy's units in India over quality concerns.
A Sun Pharmaceutical representative said the Ranbaxy acquisition gives Sun Pharma an opportunity to optimize its manufacturing network in terms of capacity, costs and efficiency. "As a result of this, decisions are being made to either close or divest some of our manufacturing facilities. Currently, the Ireland facility has been identified for divestment," the representative said.
The company declined to name a price for the Ireland plant or give a timeline for the sale. It said the proposed divestment would have no material impact on the company's performance, operations or revenues.
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