Sun Pharmaceutical Industries acquires Chattern Chemicals

Sun Pharmaceutical Industries has acquired Chattem Chemicals, a narcotic raw material importer, from Elcat.

The terms of the transaction were not disclosed. The company will apply to regulatory authorities for appropriate clearances, as required.

Chattem employs 60 people at its plant in Chattanooga, Tennessee where it manufactures a variety of active pharmaceutical ingredients (APIs) with a focus on controlled substances. For the year ending June 2008, the company's sales were estimated to be $26m (Euro 20m).

Chattem is registered with the US Drug Enforcement Administration (DEA) for four controlled substance products listed in Schedule 2: methamphetamine, phenylacetone, raw opium and concentrate poppy straw. The company is also licensed by the DEA to manufacture Schedule 1 to 5 controlled substances.

This is Sun Pharma's third acquisition of a controlled substance business. In 2005, the company acquired a facility in Hungary authorised to make controlled substance APIs. In the same year, the company acquired a new manufacturing site in New Jersey, equipped with special suites for the manufacture of controlled substances finished dosages.

Dilip Shanghvi, Sun Pharma's chairman and md, said: "This acquisition reflects our strategic resolve to be a more active player in the pain management segment in the US."