Drug ingredient supplier Shasun Pharmaceuticals has announced its intention to sell its API plant in Vizag, India.
The plan was announced in a short statement on the Bombay Stock Exchange (BSE) earlier today in which the Indian active pharmaceutical ingredient (API) manufacturer said the decision was taken following a board meeting.
“Shasun Pharmaceuticals Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 12, 2013, decided to sell / transfer the Company's unit situated at JN Pharma City, Vizag to a joint venture or any other person in any manner as the Board may consider appropriate subject to the approval of the shareholders.”
“The Board has decided to obtain Shareholders approval by way of Postal Ballot.”
Further information was not provided.
Shasun announced its intention to build the Vizag plant in 2009 .
In 2011 the firm committed to invest a further $19m to add further production capabilities at the site at the time citing new opportunites in Japan following the Government's decision to start promoting greater use of generic pharmaceuticals as a driver for the expansion.
More recently Shasun also highlighted the facility as an important part of its API growth strategy, detailing its plan in its full year financial report in March .
“This year Shasun is investing in Vizag SEZ to create manufacturing capacities for API business segment. While North America and Europe continue to be key markets… other markets such as Korea, Japan, and Brazil have presented new opportunities."