Taro Pharmaceutical (TARO) , a subsidiary of India's Sun Pharmaceutical Industries, on Wednesday appointed Uday Baldota as CEO and nominated him to Taro's board of directors.
Baldota's appointment comes as Sun and its U.S. unit face a probe from the U.S. Department of Justice over whether it and other generic companies colluded to raise prices. More than a dozen companies are involved in the investigation. Sun acquired a controlling interest in Taro in 2010.
He is expected to begin his new role on or about April 1, 2017, and will focus solely on the Taro business. He currently is Sun's CFO. Baldota's nomination to Taro's board must be approved at the company's annual shareholder meeting next month.
In May, Sun said the U.S. Department of Justice has subpoenaed it, seeking information about the pricing and marketing of the generic drugs it sells in the country. In September, Taro said the company and two of its senior officers received grand jury subpoenas related to antitrust investigation.
Kal Sundaram, the CEO of Taro, will step down by the end of this year and return as the head of Sun's business and emerging markets. An interim CEO will manage Taro's business during the three months before Baldota arrives at Taro's Hawthorne, N.Y. headquarters.
Most of Baldota's 20-plus year career has been spent at Sun and he has an MBA from the Indian Institute of Management and a chemical engineering degree from the Indian Institute of Technology.
In addition to Baldota, Taro Chairman Dilip Shanghvi has nominated to Taro's board Abhay Gandhi, Sundaram's successor as the CEO of Sun North America, is also being nominated to the Board and is expected to also serve as Vice Chairman of Taro's board. Abhay has held several leadership positions within the Sun organization, most recently as CEO of Sun's India business.