Sun Pharma shuts down Detroit manufacturing plant

Sun Pharma has decided to close its manufacturing plant at Detroit, US owned by its subsidiary Caraco Pharmaceutical laboratories. Caraco is already facing trouble following the US FDA inspection last year. And two of its facilities in Michigan and Detroit were under FDA inspection for violations of manufacturing norms.

Sun Pharma is closing its Detroit facility as of its manufacturing consolidation in the United States and as well as in a possible effort to bring down its overall costs. The company manufactures six products in this facility. The plant was engaged in manufacturing medicines for diabetes, epilepsy, heart treatment, pain, and other ailments. The company’s spokesperson stated that they have undertaken necessary measures to ensure business continuity of these products by transferring the production of these drugs to their other units and all necessary steps have been taken to avoid market shortage. Last year, FDA had raised the concern over manufacturing problems at its Detroit plant. The FDA has issued a 483 observance to the company last year, when they observed the presence of rodent traps, garbage piles surrounding building.

The company has notified the Workforce Development Agency for the State of Michigan regarding its decision to cease manufacturing operations and close the Detroit facility which belongs to Sun Pharma's subsidiary Caraco Pharmaceutical Laboratories, located at Elijah McCoy Detroit. The company has also ensured that the impacted employees get compensated with more than their regular entitlement under the severance package. They will also receive other support services including outplacement assistance. The rest of the employees are continuing through mutually consented arrangements. Around 123 employees are affected by the decision to shut down the Detroit unit.