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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
August 21, 1997
CARACO PHARMACEUTICAL LABORATORIES, LTD.
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EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER
Michigan 0-24676 38-25-5723
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(STATE OR OTHER JURISDICTION COMMISSION FILE NO. IRS EMPLOYER ID NO.
OF INCORPORATION)
1150 Elijah McCoy Drive, Detroit, MI 48202
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NO.: (313) 871-8400
The Exhibit Index is located on page 3.
The total number of pages is 5.
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ITEM 5. OTHER EVENTS.
On August 21, 1997 Caraco Pharmaceutical Laboratories Ltd. announced
the finalization of agreements with Sun Pharma of India and the Economic
Development Corporation of Detroit. Additional details are set forth on the
attached public announcement (EXHIBIT A).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CARACO PHARMACEUTICAL LABORATORIES, LTD.
/s/ Allan J. Hammer
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Allan J. Hammer
Chief Financial Officer
(A duly authorized signatory
of the Company)
DATED: August 21, 1997
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EXHIBIT INDEX
Exhibit Table
Number Exhibit Page
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99 EXHIBIT A - Company's Press Release 4
dated August 21, 1997
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EXHIBIT A
[CARACO LOGO]
FOR IMMEDIATE RELEASE CONTACT: WILLIAM R. HURD
(313) 871-8400
CARACO ANNOUNCES FINALIZATION OF AGREEMENTS
Detroit, MI, August 21, 1997 -- Caraco Pharmaceutical Laboratories,
Ltd. (Bulletin Board: CARA) today announced that it has completed the
transaction with Sun Pharma (Sun) of India in which Sun will infuse $7.5
million in cash over the next 18 months and provide technology for twenty-five
products over the next five years, valued at over $14 million.
The finalization of the Sun-Caraco agreement also makes effective the
agreement between Caraco and the Economic Development Corporation of Detroit
(EDC) whereby payments on the $8.8 million mortgage note from the EDC will be
postponed until February 1999. In addition, short term demand notes of
approximately $2 million dollars are in the process of being restructured. The
revised terms currently provide for the principal to be due August 1, 1999 with
interest at 10% to be prepaid in exchange for an equivalent number of shares of
common stock of the corporation at $1.50 per share. The notes also contain a
common stock conversion option until maturity at the same price per share.
In connection with the consummation of the Sun transaction, and Sun's
impending acquisition of 5.3 million shares of Caraco common stock, Caraco's
Board of Directors will be restructured.
"Looking towards an expeditious entrance into the US market, Sun Pharma
evaluated a number of opportunities and generic products and found Caraco
offered the synergy for development, manufacture, and marketing of generic
pharmaceutical products" said Narendra Borkar, Sun Pharma Director and Caraco
CEO Designate.
"Both companies recognize the vast potential for advancements in the
pharmaceutical market that this strategic alliance affords and we are excited
that the agreement has finally been completed. We can now begin to grow the
company through aggressive product development and marketing programs." Said
William Hurd, President of Caraco.
During the last six months, Sun has been working on a strategic plan
for introduction of new products which will be instituted immediately. Sun
Pharma is an integrated Pharmaceutical Company specializing in the manufacture
of bulk pharmaceutical active substances and finished dosage forms,
pharmaceutical product development, and marketing. It's strong product base
includes products in neurology, psychiatry, cardiology, gastroenterology,
oncology, and anti-infectives.
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Caraco Pharmaceutical Laboratories, LTD, is engaged in the developing,
manufacturing, and marketing generic drugs for the ethical and over-the-counter
markets. Among Caraco's products are Nifedipine, a calcium channel blocker for
the cardiovascular market; SureLac(TM), a lactase enzyme tablet which permits
enjoyment of dairy products without discomfort; Metoprolol Tartrate Tablets,
for the cardiovascular market; and additional products used for pain relief,
infection, and coughs and colds.
