Israel-based Taro Pharmaceutical, which is battling against a hostile takeover bid by Sun Pharmaceutical Industries, has been pulled up by the US drug regulator for maintaining poor manufacturing standards at its main production facilities in Canada. If Taro fails to address the issues raised by the US Food and Drug Administration (FDA), it may face ban on many of its products in the US market, made from the facility at Ontorio, Canada.
This unit produces two-third of Taro’s global production and sells products in the US, Canada and other geographies. Taro recently said it estimated net sales of $341.9 million in 2008. Taro also has manufacturing units in the US, UK, Ireland and Israel.
Sun Pharma which is currently the largest shareholder in Taro with above 36 per cent stake would be concerned on the fall out of these developments. The company is in discussions with the Taro management to resolve the differences over takeover, as per the directive of Israeli Supreme court.