In January, Sun Pharma had replaced its domestic formulations distributor Aditya Medisales with its own subsidiary in the backdrop of a second whistleblower complaint filed against the company.
New Delhi: Drug major Sun Pharmaceutical Industries Monday said its wholly owned subsidiary Sun Pharma Distributors Ltd (SPDL) will commence distributing its formulation products in India from this month in a phased manner on the same terms as was with Aditya Medisales. This phase transition is expected to be fully completed by the first quarter of 2019-20, Sun Pharma said in a filing to the BSE.
“The above-mentioned transition and consequential one-time reduction in sales and profit will impact Sun Pharma’s financial results for the period ended March 31, 2019,” it added.
The regulatory filing further said that “Atlas has completed assignment of its business rights and obligations including those arising from the supply contract with Sun Pharma to a wholly owned subsidiary of Sun Pharma”.
This has no material impact on the profit or loss for the year ended March 31, the company said.
In January, the Pharma major had announced that distribution related to the company’s India domestic formulations business shall be transitioned from Aditya Medisales Ltd to its wholly-owned subsidiary.
Medical Dialogues had earlier reported that the company had replaced its domestic formulations distributor Aditya Medisales with its own subsidiary in the backdrop of a second whistleblower complaint filed against the company.
The company had also announced unwinding of a transaction amounting to Rs 2,238 crore with Atlas Global Trading and initiated steps to induct S R B C & Co LLP, its statutory auditors, as auditors of subsidiaries