Sun Pharma bid for Able Labs following its filing of the US bankruptcy code in July 2005.
According to the US Securities and Exchange Commission filing, Sun Pharma will pay $23.14 million as part of the Able Labs buyout deal.
Along with Sun Pharma, another Indian company the Hyderabad-based Aurobindo Pharma also bid to buy the US company. But, it is learnt that Sun's bid for the deal has now been finalised.
Sun Pharma spokesperson, however, said the deal is yet to be closed, and it will take at least a month to announce the same.
"We have completed the formalities as per the SEC filing procedures in order to participate in the bidding. But more details about the deal are expected in a month," Sun Pharma sources said.
Able Laboratories was engaged in development and manufacture of generic pharmaceutical products in the tablet, capsule, liquid and suppository dosage forms.
In May 2005, Able suspended manufacturing and distribution of its entire product line. At present, it is not generating income or any revenue on account of its suspension of manufacturing operations and product recalls.
Able Laboratories had filed a petition to be reorganised under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court on July 18, 2005.
According to the company website, the US company had filed a motion with the US code in the US court requesting approval of procedures to protect its net operating loss carryforward.
Based on current projections, it expected to use a substantial portion of its NOL carryforward to offset future income and reduce its federal income tax liability.
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