Sun Pharmaceutical Industries Ltd
Established in 1983, Sun Pharmaceutical Industries Ltd. is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several other markets across the world. The company has strong skills in product development, process chemistry, and manufacturing of complex API, as well as dosage forms. The company operates in select therapeutic segments like psychiatric, neurology, cardiology, diabetology, orthopedics and gastro-enterology. It markets specialty ranges of high-value branded formulations in several countries across Asia, Africa and west Asia. In India, Sun Pharma currently has a 3.3 per cent share in a highly fragmented market and enjoys a position of strength in brands catering to therapy areas of psychiatry (Repace), neurology (Oxetol), cardiology (Aztor) and gastroenterology (Pantocid) amongst others.
The company has demerged its innovative research and development (R&D) into a separate company. Sun Pharma will spend $60?75 million (more than Rs 300 crore) over the next three years through its innovative research entity for initiating and completing clinical studies to support products in its pipeline.
INVESTMENT RATIONALE
§ Sun Pharma’s wholly owned US subsidiary, Sun Pharmaceutical Industries has acquired 100% ownership of Chattem Chemicals,Inc, a narcotic raw material importer from Elcat, Inc.
§ Bulk drugs revenue improved by 44% to Rs 134.92 crore for the quarter under review. Domestic bulk drugs revenues went up by 62% to Rs 34.11 crore and International bulk drugs revenues improved by 39% to Rs 100.81 crore.
§ Sun Pharma has filed 7 ANDAs and Caraco filed 3 ANDA in the quarter, taking the total number pending approval to 96 filings.
§ Consolidated R & D expenses for the quarter stood at 88.39 crore, or 7.5% of net sales.
§ USFDA has granted approval for the Abbreviated New Drug Application (ANDA) to market generic Sinemet, Carbidopa and Levodopa tablets. In the Quarter ended Sept’2008, 3 products have been approved by the USFDA.
§ Company had strong performance across all its business segments. The generic business in the US, the branded prescription businesses in India and international markets continue to post steady growth. This performance validates belief in the potential for these markets and the investments co. have made in setting up, nurturing and expanding these businesses.
§ Co. generates 41% of its annual revenues from the US market, a record of sorts among Indian drug firms. The company is bullish on its US prospects and expects 25% growth in the country this year, higher than the 18-20% growth projection it has given for other markets including India.
