A so-long wave to Tipperary? Sun earmarks Ranbaxy Ireland plant for sale

By Gareth Macdonald contact

- Last updated on GMT

Sun earmarks Ranbaxy Cashel site for divestiture
Sun earmarks Ranbaxy Cashel site for divestiture

Related tags: Food and drug administration

Sun Pharmaceutical has earmarked the Ranbaxy plant in Cashel in County Tipperary, Ireland for divestiture.

Sun acquired the Cashel facility along with fellow Indian generic drugmaker Ranbaxy in a $4bn (€3.5bn) takeover deal completed in March​.  

The site manufactures and packages generic pharmaceutical products for a variety of markets. 

According to a report in the Tipperary Star​ newspaper, the 100 or so workers employed at the facility were told it had been earmarked for sale at a meeting last week.

This was confirmed in an official statement emailed to this publication by Sun.

In March this year, Sun Pharma successfully completed the merger of Ranbaxy. This has provided an opportunity to optimize overall manufacturing network in terms of capacity, costs and efficiencies.

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 use of the word "currently​" may indicate the decision is not yet final. Similarly, the Star article states that "It’s understood the fate of the plant will be known for certain in the New Year​" but does not identify the source of the information.

The phrase "some of our manufacturing facilities​" also suggests that - if the Cashel plant is divested - it may not be the only site up for sale.

Synergy and compliance

When Sun bought Ranbaxy​ it said the focus would be on regaining approval US Food and Drug Administration (FDA) approval for the latter's manufacturing sites rather than cost cutting.

The Cashel facility news indicates this strategy has been revised as - despite Sun's expensive remediation efforts​ - the US FDA has not changed it view on the Ranbaxy plants cited for good manufacturing practices (GMP) violations​.

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