India Pharma Outlook Team | Friday, 21 February 2025
On Thursday, Sun Pharmaceutical Industries announced that it has requested shareholders' consent for related-party transactions (RPTs) totaling about $1 billion for FY26. The dealings include Sun Pharma's affiliates, such as Taro Pharmaceuticals (Canada), Taro Pharmaceutical Industries (Israel), and Taro Pharmaceuticals U.S.A., among others. The RPTs include financing via loans, guarantees, and securities, along with income from pharmaceutical product sales, reimbursements, and business transfers.
An essential element of the transactions involves a $650 million funding plan for its U.S. subsidiary, Sun Pharmaceutical Industries Inc. (SPI Inc.), aimed at facilitating business growth. Sun Pharma indicated that these transactions operate on an arm’s length basis and comply with relevant local regulations. Shareholders will be able to vote electronically between February 24 and March 25, 2025. In November of last year, the Ministry of Corporate Affairs imposed fines on some current and former directors and officials, including CMD Dilip Shanghvi, for not disclosing information and not securing board and shareholder consent for specific related-party transactions.
"A total combined compounding fee has been levied on certain past and present directors/officers of the company—Dilip Shanghvi (Rs 9.5 lakh), Sudhir Valia (Rs 9 lakh), Sailesh Desai (Rs 9 lakh), K Subramanian (Rs 1.5 lakh), Uday Baldota (Rs 6 lakh), and C Muralidharan (Rs 1.5 lakh),” the company said in a regulatory filing.
, CDSCO.jpg)
