Sun Pharma Case Study

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SUN Pharma Company was established as a partnership firm by Dilip Sanghvi & his family to manufacture pharmaceutical formulations at Vapi, Gujarat. The Company specializes in selected therapeutic segment to psychiatry, cardiology, neurology, gastroenterology, orthopedics, ophthalmology nephrology and diabetology. It also makes Active Pharmaceutical Ingredients such as warfarin, carbamazepine, etodolac , clorazepate, anticancers, steroids, peptides, sex hormones, and controlled substances. It is the largest pharmaceutical company in India, the biggest Indian pharmaceutical company in the US, and the 5th biggest speciality generic company globally. Over 72% of Sun Pharma sales are from international markets specially the US. The US is the single…show more content…
It foresaw the slowdown in the domestic market and made early inroads in the US, the world's largest pharma market. Today only a fourth of its revenues come from India while the US contributes the bulk of its profits. One of the reasons for Sun's rise in the US market is its ability to pick up depressed assets and make them profitable. Realizing early that research is a critical driver of growth, Sun Pharma established a research center, Sun Pharma Advanced Research Company, in 1993 to create a superior product pipeline as well as strong process development skills. Over the years Sun has also used the strategy of acquisitions and mergers to grow at a good pace. It acquired Knoll Pharma’s bulk drug facility, Gujarat Lyka Organics, 51.5% in M. J.Pharma, did a merger with TamilNadu Dadha Pharma & Milmet Labs and acquired Natco’s brands. After the merger with TamilNadu Dadha Pharma the company could enter the gynecology and oncology segments. Sun Pharma also acquired 100% of Ranbaxy Laboratories Ltd, in an all-stock transaction, valued at $4 billion. Japan's Daiichi Sankyo held 63.4% stake in Ranbaxy. After this acquisition Sun Pharma would be the largest pharmaceutical company in India, the biggest Indian Pharma company in the US, and the 5th biggest generic drug making company in the world. Given its growing size, Sun Pharma's growth rates are likely to turn moderate sooner than later. But a specialized portfolio of high-margin products both in the US and Indian markets will hold it in good

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