Sun Pharma To Close Caraco Manufacturing Plant

Sun Pharmaceutical Industries has announced that it will be closing its Detroit manufacturing plant later this summer. The company says that this move is part of its attempt to consolidate its U.S. manufacturing operations. Having recently acquired Ranbaxy Laboratories, Sun Pharma expects to have more plants in the U.S. following completion of the deal.

Up to this point, the Detroit plant, operated by Sun Pharma subsidiary Caraco Pharmaceutical Industries, has produced drugs to treat diseases and conditions including diabetes, epilepsy, heart problems, pain, and psychiatric issues. Products that were manufactured at this specific site will be transferred to other units. The company stated in its release that necessary steps have been taken to ensure no drug shortages will occur in the wake of this closure.

The plant was responsible for creating as many as 35 generic and private-label drugs until 2009. That year, the FDA stated that the company plant was not meeting U.S. regulatory standards for drug manufacturing, and it seized product ingredients and ordered that all drug production be stopped. Drug production was also stopped at the company’s Farmington Hills and Wixom plants. In August of 2012, the FDA allowed Caraco to restart production for three drug products.

Caraco Pharmaceuticals was established in 1984, and was acquired by the Indian pharmaceutical company Sun Pharma in 1997. In 2007, the plant was approved for $6.8 million in local and state tax incentives, as government officials saw the potential for increased local economic activity and new jobs for residents. During 2007, the plant had about 450 workers, and the company stated that it had plans to increase that number to 600 over the next 5 years.

Following closure of the plant, 178 workers will be laid off.