Sun Pharma (PowerPoint)

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• Sun Pharma has been one of India’s fastest growing
  pharmaceutical companies. It was promoted by Dilip Sangvi
  with the aim of manufacturing pharmaceutical formulations. It
  started as a partnership firm in 1982 and became a limited
  company in 1993. The major segments that the company
  concentrates on are the niche segments such as psychiatry,
  cardiovascular, gastroentology and neurology. During the last
  two years Sun Pharma has improved its topline by over 30
  percent YoY when the overall pharma industry has grown by
  not more than 12 percent per annum.
•   Type                     Public (BSE: 524715)
•   Industry                 Pharmaceutical
•   Founded                  1983
•    Headquarte               Mumbai, India
•    Products                 Pharmaceuticals
•    Revenue                  2,508.91 crore
•    Net income               898.65 crore
•   Employees                 8,000 (2008)

• Website          
Shareholding Pattern
• Brand      (% sales) Market     (in segment)             Growth
•   Monotrate 7        23.7%     (Cardiac Care, Anti-anginal) 13.5%
•   Alzolam      4.8 9.3%        (Sedatives/ Tranquil )       25.6%
•   Glucored     3.9 5.5%        (Anti-diabetic)              34.7%
•   Famocid      3.2 1.9%        (Famotidine, Anti-ulcer      40 %
•   Zeptol       3.6 6 %         (Antiepileptic)              53.5%
•   Encorate     3.1 5.2%       (Antiepileptic)              138.6%
•   Angizem       2.9 4.4%      (CalciumChannelBlocker)        9.1%
•   Syndopa       2.3 27%       (Anti-Parkinson’s)            48.4%
             Key Acquisitions & Rationale

•    Year         Country                           Acquisition
•     2008        US              Caraco acquired some products of Forest’s Inwood business
•     2008        Tennessee, US       Acquired Chattem Chemicals, Inc
    . 2005      New Jersey, US       Assets of Able labs
      2005       Ohio, US            Formulation plant in Bryan
      2005       Hungary             Acquired ICN Hungary
      2004       US                   Women's Health Brands
      2004       Baroda, India       Merged Phlox Pharma
      2000      Chennai, India      Merged Pradeep Drug Company Ltd (PDCL)
      1999    India                  Merged Milmet Labs
      1998     India                  Brands from Natco
      1997    Detroit, US             Acquired Caraco
      1997   Chennai, India          Merged Tamilnadu Dadha Pharmaceuticals Ltd (TDPL)
      1996    Halol, India            Acquired MJ Pharma
      1996    Ankleshwar, India      Acquired Gujarat Lyka
      1996   Ahmednagar, India       Bulk Drug plant from Knoll Pharma
                      Swot Analysis
• Strengths:
 Ability to launch new products with a great amount of speed and
 The company has only 20% exposure to the DPCO.
 The past growth rate of the company has always been double that of the
  industry as a whole.
• Weaknesses:
 Continuous losses of Caraco Pharma .
 Declining profit margins
•    Opportunities:
    The relaxation of DPCO will be a big boost for the company and this might
    marginally improve the profit margin.
    The company has already made ANDAs (Abbreviated new drug application) in
    USA and it provides a great opportunity for growth for the company.
   The company has entered the US market This provides a great opportunity for
    the company to make the most out of the expiring patents in USA.
•   Threats:
   The entry of foreign players
    The company is more into acquisition based growth and this might lead to a
    stage of financial crunch as it has already happened in the case of Caraco
    Sun pharma provided debt to Caraco and is facing problems due to the
    continuous losses made by the latter.