Marketing Strategy of Sun Pharmaceuticals

By, AMAN DUBE K( QA,4) VIVEK VIJAYAN (QA, 18) ABDUL FAYAZ BAIG ( P’CEUTICS, 1)

Timeline 1983Established with five Psychiatry Products

1988First Cardiology Products- Monotrate and Angizem launched

1997Acquisition of Tamil Nadu’s Dadha Pharmaceuticals and Caraco Pharmaceuticals Of detroit

2000Became Fifth Largest company

2008 Chattem Pharmaceuticals

2010Acquisition Of Taro Pharmaceuticals. Crossing One Billion $ Sales

2012Acquisition of Dusa Pharmaceuticals

2013Crossing 2 billion$ Sales becoming second largest in India

2014Acquisition of Ranbaxy becoming India's largest in terms of market share

Strategy and Approach

Crossed US$ 1 Bnsales - 27th year

Crossed US$ 2 Bnsales - 30th year

Create Sustainable Revenue StreamsFocus: Chronic therapiesDifferentiation: Technically complex productsSpeed to market

Seek Cost leadershipVertical integration: Development through manufacturing (API and finished dosage) to marketingOptimize operational costs

Balance Profitability and investments for

futureAcquisitions yield high ROIDevelopment of complex generics

A Road less travelled

Focus on super specialty prescriber and therapeutic niche segments such as Psychiatry, neurology

Marketing strategy clearly focused on optimizing profits.

Pricing strategy is based on par with the leading players.

Universal coverage of customers

in the specialities of choice

Product strategy is to provide a complete range of products in a given prescriber segment

Attractive incentives on achieving the targeted sales

Sun Rising in the westFirst Indian company to

cross 1 billion $ mark in US.

Sun pharma has built up an enviable product portfolio through a steady stream of ANDAs (Abbreviated New Drug Applications) over the years. It has so far 237 approved ANDAs and 147 pending ANDAs

70% of its revenues

generated from US

branded generics market and rest of the

world.

SWOT Analysis

• Threats• Opportunities

• Weakness• Strengths1.Market Leader in chronic segments2.Introduction of Pantoprazole & Eloxatin in US market has very limited competition3.Strong brand presence in India and US markets

1.To Tap Multiple opportunities by manufacturing multiple dosage forms2.Enhancing Presence in emerging markets

1.There is growing competition in generics market2.Stringent patent regulations3.High price sensitivity of consumers

1.Can leverage their acquisitions to further increase the growth2.Increase their presence in contract manufacturing3.Increasing healthcare awareness in India

Segmental Analysis

COMPETITION ANALYSIS

• It is an assessment of the strengths and weaknesses of current and potential competitors.

• This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.

Competition analysis

Identify competitors

Ranking

Traffic analysis

Bench marking

Strategies Differentiation

Expand new markets

Protect market shares

Increasing market shares

Market follower strategies

DIFFERENTIATION

Acquisition of DUSA

Pharmaceuticals

Fully integrated specialty pharma company focusing primarily on the development and marketing of its Levulan®photodynamic therapy (PDT) technology platform

It has a patent protected drug device treatment for curing skin lesions.

The US alone has over 5 million treatments annually with DUSA having 5% share of it.

A drug device combination is difficult to copy for a generic company.

Expand new marketsThe key growth drivers for future include an increasing shift to the use of generics medicines, accompanied by patent expiries in the US and volume-driven growth in pharmerging markets.

Set up manufacturing facilities in Brazil,

Mexico and Bangladesh to comply with local

regulatory requirements.

Focus on ensuring long-term competitiveness of

the formulations business through strong

backward integration

Establish long-term contracts with customers in regulated markets for

sustainable revenue growth and margins

Protect market shares

Continuous innovations

Proactive marketing

Defensive marketing

Increase in market share

Enhanced drugs

volumes

New drug launches

Minor price

increases

Ensuring timely

product launches

Focus on fast

growing chronic

therapies

Acquisitions

Market follower strategy

The strategy of product imitation might be as profitable as a strategy of product innovation

Here the innovator bears the expense of developing a new product, however another firm may copy or modify the same product and may incur high profits.

Major route of Eliminating Competition

1996

ACQUISITIONS AND JOINT VENTURES

Caraco was the first international acquisition

1997

1998• Purchased basket of products

1999

2000

2004

2005

2008

2009

20102011

2014

2012

CHRONIC(SUPER CORE MODEL)

ACUTE(CORE MODEL)

POSITIONING

POSITIONINGPOSITIONING

POSITIONING

MAJOR BRANDS

PANTOCID

SUSTEN AZTOR

GEMER

REPACEGLUCOREDSTROCIT

CLOPILET AND

CARDIVAS.

FDCs•PantoprazolePANTOCID

•Clarithromycin•PantoprazolePANTOCID HP•Domeperidone•Pantoprazole

PANTOCID D

STRENGTH•LOSARTANREPACE 100 , 50 &

25MG

•LOSARTAN•AMLODIPINE

REPACE A 25MG•LOSARTAN•AMLODIPINE

REPACE AF 50 MG

MARKET SHARE

R&D

The company has incurred `2.05 bn in Q1FY’14 as R&D expense.

Spends 6% of its revenues on R&D

FILINGS

Pipeline for Abbreviated new drug applications and New molecular entities.

Aggressive PARA IV Filings

ANDA filings stood at 453 with the USFDA as on June 30, 2013 and received 9 ANDA approval during Q1FY’14

The combination of Sun Pharma and Ranbaxy will operate with 629 new generic drug approvals in the US alone.

5BLN$

THANK YOU