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SWOT Analysis
of
SUN Pharmaceuticals ltd.
~By
Pratik Rahate

Sun Pharmaceuticals Industries
Limited.
 Tagline is “Leadership through focused research”
 Established by Mr. Dilip Sanghvi in 1983.
 Sun pharma is an Indian Global Pharmaceutical company headquartered
in Mumbai, Maharashtra.
 They manufactures formulations and APIs primarily in India and the United
States.
 The company offers formulations in various therapeutic areas, such as
cardiology, psychiatry, neurology, gastroenterology and diabetology.
 It also provides APIs such as warfarin, carbamazepine, etodolac and
clorazepate, as well as anticancers, steroids,peptides and sex hormones.

About Sun Pharma
Among the top five pharma companies.
Strong presence in generics market.
Over half of the sales from North America.
Market capatilization of US$ 15.6 billion.

Sun Pharma sales across the globe.
28%
(In
India)
Primarily in
US
72%
(Outside
India)

Indian Branded
Generics
US Generics
International
Branded Generics
Active
Pharmaceutical
Ingredients (API)
Business

Acquisitions and Joint Ventures

1. Strong growth in emerging market business
• Sun Pharma is expanding its footprint in Russia which aims to increase local
production of generics.
• In 2016 it has acquired Russian drug maker Biosintez in a $60-million deal as
it steps up focus on emerging markets.
• Ranbaxy entered the Russian market in 1993 and had a established market
presence in the country.
• Hence Sun Pharma's Russia business has expanded after acquisition of
Ranbaxy in 2014.

2. They have successfully acquired
Ranbaxy laboratories.
• Because of this acquisition Sun pharma
has became 5th largest generic company in
the world.
• Its annual sales increased by 68% in
generic market.

3. Continuous increase in ANDA (Abbreviated New Drug
Application) approvals

4. Strong brand presence in Indian branded
generics market
• Market leader in branded specialty chronic
segments in India
• Amongst the largest Indian companies in branded
emerging markets

 4th largest generics company in US.
 Largest generic dermatology company
and 3rd largest branded dermatology
company in the US.
5. Strong growth in US market

Underperforming Subsidiaries
Shares of Sun Pharma fell
over 5 per cent after its
subsidiary Taro
Pharmaceutical Industries
reported disappointing
numbers for the June quarter.
On the BSE, the share began
on a weak note at Rs 489
before it touched a 52-week
low of Rs 472.20 in intra-day
trade

Recent NPPA decission
 The country's drug price regulator has reduced the prices of
eight medicines sold by leading pharma companies such as
Sun Pharma and Unichem by up to 85 %, in one of the
sharpest price-cuts in the last few years.
 The prices of Sun Pharma and Unichem's combination blood
pressure medicines ‘ Spironolactone +Torsemide ' have been
halved and will now cost Rs 21 and 24 for 10-tablet strips
respectively.

Regulatory issues in
manufacturing process
The US drug
regulator, the Food
and Drug
Administration
(FDA) says it found
seven breaches of
manufacturing
standards at Sun
Pharma's
formulations unit at
Mohali, in a recent
inspection.

Sun Pharma looks to grab major share
of oncology market with Gemcitabine
InfuSMART.
HOW BIG IS THE OPPORTUNITY FROM THIS NEW PRODUCT?
CAN MORE INFUSMART ONCOLOGY WILL BE ROLLED IN THE
FUTURE?
DO SUN PHARMA SEE COMPETITION COMING IN ?
OUTLOOK FOR FY17 ?

Sun pharma enters dermatology
segment to expand retail offering.
 World’s fifth biggest generic drug maker launched a new
dermatology product – SUNCROS .
 Sunscreen brand earlier available only as a branded prescribtion
product.
 Now has an 18% market share and looking at a 30% market share
in 2-3 years.

Sun Pharma to outsource manufacturing of
its psoriasis drug to Samsung BioLogics.
 Entered into a strategic agreement with Samsung BioLogics
to manufacture the former’s psoriasis drug Tildrakizumab.
 Samsung BioLogics is a globally renowned CMO.

Sun Pharma looking to leverage
Ranbaxy OTC drugs.
 To expand its Global presence.
 Sun Pharma had no presence in the high-volumes OTC segment.
 Recently rolled out its first OTC drug, antacid Pepmelt, that will compete
with Eno, Digene and Pudin Hara.
 Leading brands like Revital, Volini, Chericof, Pepfiz and Garlic Pearls have
the fastest-growing business.
 Ranbaxy has 15 OTC products, which contributed over 20% of Ranbaxy;s
sales before acquisition.
 OTC contribute 10% to 15% to Sun Pharma’s revenues.

1. Growing competition in generic market
• There is a stiff competition in generic market
from other low cost rivals like Lupin, Dr.
Reddy’s, Cipla which affects growth of market
share of Sun pharma.
• The generic drug companies in India have
broad technological and diversified market
capabilities. As more and more patents
expire, the generic portion of the
pharmaceutical market is expected to
continue to have increased sales

2. FOREIGN CURRENCY FLUCTUATIONS
Sun pharma being an exporter of
pharmaceutical products, its profitability
could decline because of adverse currency
movements.

3. Drug pricing control methods in India
• Government have influence over
pricing of a drug
• New pricing policies in India can have
negative impact on the industry.
• Changes in such policies may affect
profitability of Sun pharma.

• The company is more into acquisition based growth this
might lead to a stage of financial crunch as it has already
happened in the case of Caraco pharma.
• Sun pharma provided debt to Caraco and is facing
problems due to the continuous losses made by the latter.
• Sun has invested $ 12.8 m – $ 7.5 m towards equity and $
5.3 m towards debt in Caraco, which has registered a loss
of over $ 9.5 m for the year ended December 1999.
4. Financial crunch by acquisition

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SWOT Analysis of Sunpharma

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