Sun Pharma to settle Dubai firm loans, shift distribution arm to subsidiary

Business Standard Sun Pharma to settle Dubai firm loans, shift distribution arm to subsidiary

Sun Pharma in damage control mode after stock loses about 30% of its value since Sept due to corporate governance concerns

Companies News: Seeking to ease investor concerns, embattled drug major Sun Pharmaceutical Industries on Tuesday announced plans to unwind loans of Rs 2,238 crore given to a Dubai-based company, Atlas Global Trading FZC, and transfer the distribution of the domestic formulation business to a subsidiary from a separate entity.

Sun Pharma said the company’s consolidated balance sheet had receivables of Rs 2,238 crore from a non-related party. “This liability was in respect of Atlas assuming the damages on account of Protonix patent litigation settlement entered by Sun Pharma, which was disclosed in Sun Pharma’s annual report for fiscal year 2014,” it said in a statement.

Last month, when investors had asked Sun Pharma Managing Director Dilip Shanghvi about the loan in a conference call, he said it was given to a “nonrelated” party, but did not give details.

Responding to Business Standard queries, Sun Pharma clarified Atlas Global or any of its subsidiary was not a related party at any point in time...Read More