India’s Sun Pharma agrees to buy GSK Opiates in Australia

As part of the deal, GSK’s existing opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria), and its portfolio of opiates products along with inventory, will be transferred to Sun Pharma’s subsidiary.

The acquired business consists of analgesics produced from raw materials found in opium poppy plants to treat moderate to severe pain.

The deal will see all employees from both sites being offered employment by Sun with the Opiates business.

GSK Opiates general manager Steve Morris said: "The Opiates business has been an important part of our Australian business for many years, but as our portfolio transitions, we believe now is the right time to hand this business over to someone else."

The deal will allow GSK to simplify its operations in Australia as well as focus on delivering its new product portfolio that will be central to its growth strategy in this country.

Sun Pharma API business executive vice-president Iftach Seri said: "The global Opiates market holds good potential and the addition of GSK’s Opiates business will strengthen our positioning further.

"The acquisition is a part of our strategy towards building our portfolio of opiates and accessing strong capabilities in this segment."

Both the firms have not disclosed the financial terms of the transaction.

Subject to customary closing conditions and requisite regulatory and other approvals, the transaction is expected to be closed by August 2015.

Image: Sun Pharmaceutical Corporate office in Mumbai, India. Photo: courtesy of Sun Pharmaceutical Industries Ltd