Expanding presence in the pain management segment, Mumbai-based Sun Pharmaceuticals’ wholly-owned US subsidiary has acquired Chattem Chemicals, Inc, a US-based firm that manufactures active pharmaceutical ingredients (APIs) with a focus on controlled substances. The value of the transaction was not disclosed.
Chattem is registered with the US Drug Enforcement Administration (DEA) as a narcotic raw material importer.
The company has import registration for four narcotic products listed under Schedule 2 and also has the licence to manufacture Schedule 1 to 5 controlled substances.
A controlled substance is a drug whose manufacture, possession and use are government-regulated. They include illegal drugs and some prescription medications. The narcotics are classified under schedules based on their potential for abuse and dependence, and accepted medical use in the US.
The Chattem acquisition is Sun Pharma’s third in this segment. Earlier, it acquired a Hungary facility that manufactures controlled substances APIs, starting from the farming of poppy, the natural resource for narcotics. Later, Sun bought Able Laboratories in New Jersey, which manufactures formulations, or finished dosages, from these APIs.
Chattem’s narcotic importer registration will help Sun import raw materials (concentrated poppy straw) from Hungary for its New Jersey plant. As these are controlled substances, the purchase of their raw materials and production of formulations face regulatory hurdles. Besides, APIs made from poppy can’t be manufactured from any other substance.
A Sun Pharma spokesperson said, “As Chattem has the necessary registration for importing narcotic raw materials, it completely integrates our controlled substances portfolio in the US.”
Ranjit Kapadia, head of research at Mumbai-based brokerage Prabhudas Liladhar, said, “Chattem completes the value chain for Sun Pharma for manufacturing controlled substances in the US. It will help the company as competition is limited.” The US pain management market, including controlled substances, stands at $6 billion. Chattem has estimated annual sales of $26 million.
Source:
http://www.dnaindia.com/report.asp?newsid=1209635
Chattem is registered with the US Drug Enforcement Administration (DEA) as a narcotic raw material importer.
The company has import registration for four narcotic products listed under Schedule 2 and also has the licence to manufacture Schedule 1 to 5 controlled substances.
A controlled substance is a drug whose manufacture, possession and use are government-regulated. They include illegal drugs and some prescription medications. The narcotics are classified under schedules based on their potential for abuse and dependence, and accepted medical use in the US.
The Chattem acquisition is Sun Pharma’s third in this segment. Earlier, it acquired a Hungary facility that manufactures controlled substances APIs, starting from the farming of poppy, the natural resource for narcotics. Later, Sun bought Able Laboratories in New Jersey, which manufactures formulations, or finished dosages, from these APIs.
Chattem’s narcotic importer registration will help Sun import raw materials (concentrated poppy straw) from Hungary for its New Jersey plant. As these are controlled substances, the purchase of their raw materials and production of formulations face regulatory hurdles. Besides, APIs made from poppy can’t be manufactured from any other substance.
A Sun Pharma spokesperson said, “As Chattem has the necessary registration for importing narcotic raw materials, it completely integrates our controlled substances portfolio in the US.”
Ranjit Kapadia, head of research at Mumbai-based brokerage Prabhudas Liladhar, said, “Chattem completes the value chain for Sun Pharma for manufacturing controlled substances in the US. It will help the company as competition is limited.” The US pain management market, including controlled substances, stands at $6 billion. Chattem has estimated annual sales of $26 million.
Source:
http://www.dnaindia.com/report.asp?newsid=1209635
