Pharmaceutical company Sun Pharmaceutical Industries Limited is in focus on account of the ongoing Israel-Palestine conflict as its subsidiary Taro Pharmaceuticals is an Israeli based company.

Share Market Live

NSE

Sun holds 78.5% stake in Taro. The arm is listed in NYSE has operations in the US, Canada and Israel with 1,500 employees across the globe. It was bought by Sun Pharma in 2010 after a long drawn court battle. Taro has a portfolio of 200+ pharma products across generics, prescription and OTC.

Sources have told CNBC-TV18 that Taro could see some of its sales and manufacturing impacted on account of the Israel-Palestine conflict. The reason for disruption is because people working for the company in Israel could be called for active military duty.

Some of the employees have already been called for active duty, sources said.

Sources have indicated that as of now the company does not expect a material impact on business. The arm which has over $1 billion of cash on its books saw sales grow 2.1% to $573 million in FY23.

We have reached out to Sun and await an official comment from the company.

Sun Pharma is looking to fully acquire its Israel based unit. Earlier this year, Sun has proposed to acquire all outstanding shares for $38 per share in an all cash deal. The company proposed to do so via a reverse triangular merger.

The Taro stock was down close to 5% in Friday’s trade on the US exchanges.