New Delhi : Sun Pharma may discontinue certain non-strategic businesses as part of its integration process with Ranbaxy Laboratories, which it acquired in a USD 4 billion deal last year.
The Mumbai-based firm also expects its revenues and net profit to be adversely hit in the short term due to supply constraints at Halol facility in Gujarat and high expenses arising out of Ranbaxy integration as well as remedial actions.
“As part of the integration process (of Ranbaxy), the company expects to incur certain integration charges in order to generate long-term synergies from this merger. Also, the company may decide to discontinue certain non-strategic businesses,” Sun Pharma Managing Director Dilip Shanghvi said. He added that the company’s overall growth will be adversely impacted due to temporary supply constraints at Halol plant. The US Food and Drug Administration had pointed out certain current good manufacturing practice deviations at the company’s Halol facility. The company’s profitability is also expected to be hit by certain expenses and charges arising out of Ranbaxy integration as well as remedial actions, he added.