Sun Pharma growth continues in international markets

Following a string of acquisitions, Sun Pharma is one of the largest and fastest growing Indian pharma companies with one of the strongest balance sheets in the sector. The management is looking at inorganic growth and is scouting for acquisitions, especially in the US and in emerging markets.

Sun Pharma is ranked number one in the domestic market and holds a 9% market share. In dollar terms, sales in the US came in at US$488m for the quarter ended 31 March 2015, accounting for 49% of total sales.

The company’s Israel-based subsidiary Taro, which has most of its sales in the US and Canada, posted overall sales of $244m for the fourth quarter in the 2015 financial year. This was up 30.5% from the corresponding quarter of last year, led by price hikes taken in Q3. Taro’s net profit for Q4 2015 was up 70% to $152m.

R&D expenditure by Sun Pharma during the quarter was put at 9.4% of sales compared with 7.1% of sales in the same quarter of 2014. As of March 2015, Abbreviated New Drug Applications (ANDAs) for 438 products cumulatively have been filed by Sun Pharma with the US FDA. Currently, ANDAs for 159 products await US FDA approval, including 12 tentative approvals. The company plans to file 20 ANDAs in the 2016 financial year.

With the recent acquisitions of DUSA, URL Pharma and Ranbaxy Laboratories, Sun Pharma has built a strong position in North America, which accounted for 50% of its sales in 2015. The merger with Ranbaxy Laboratories made Sun Pharma the fifth largest speciality generics company in the world, behind Teva, Sandoz, Allergan and Mylan.

Sun Pharma’s domestic formulation business is among the fastest growing in the Indian pharma industry. It contributed 23% to the company’s total turnover in 2014. It is ranked second in the domestic formulation market with a 5.4% share. International formulation sales amounted to $84m in Q4 2015.