Sun Pharmaceauticals to shut Unit Caraco’s Detroit facility
NEW DELHI: Sun Pharmaceutical Industries, India’s top drugmaker by market capitalization, plans to permanently shut the Detroit facility of US subsidiary Caraco Pharmaceutical Laboratories that had been red-flagged by the US drug regulator in 2009. The closure may happen as soon as next month.
The company, in a submission to the state administration of Michigan on April 30, said it has decided to close the Elijah McCoy Detroit facility around June 30. “The company has undertaken necessary measures to ensure business continuity of the products being manufactured at this facility . The manufacturing of these products is being transferred to other units and all necessary steps have been taken to avoid market shortage,” Sun Pharma said in a statement on Friday.
The statement didn’t say why it has decided to close the facility and the company didn’t respond to an email from ET seeking the reasons. It said the company has provided the requisite advance written notice of the facility closure to the employee union and all affected employees, but did not provide the headcount at the facility or the number of those who are affected. “The company has ensured that the impacted employees get compensated with more than their regular entitlement under the severance package,” it said.