Sun Pharmaceuticals Industries Limited

Group number: 6Rakshith Kumar

Prateeksha RamanSachin

Sri krishnaVaishnavi

INTRODUCTION• Sun Pharmaceuticals was set up in 1983 by Dilip

Shangvi and the company started off with only 5 products to cure psychiatric illness.

• Its headquarters is situated in Mumbai, Maharashtra

• It has manufacturing plants in India, US, Canada, Brazil, Mexico and Israel.

• 75% of products produced are exported.• It gets its 60% of its turnover from US.• In 1994 Sun pharma was listed on stock

exchange

Conti...• Industry: Pharmaceutical (Recently

entered in to power sector) •Type of company: Public company•Product: Pharmaceuticals, generic drugs.•No. Employee: 32,700•Revenue- $166.33 billion (2013-2014)•Manufacturing Locations – 26 including

US, Canada, Brazil, Mexico, and Israel

Mergers And AcquisitionsYEAR DEALS RATIONALE1996 Bulk drug unit, Knoll

PharmaBulk capacity

1996 Caraco Acquired initial equity stake; entered the US Generic market.

1996 Gujarat Lyka Organics Manufacturer of cephalexin bulk active with a USFDA approval for the intermediate, 7ADCA.

1996 MJ Pharma Manufacturer of several dosage form lines with a UK MHRA approved plant.

1997 Tamil Nadu DadhaPharma

Enabled a quick entry into high growth therapy areas of interest: fertility, anticancer, anaesthesiology, gynaecology, pain managemen

1998 Milmet Labs Quick entry into ophthalmology1998 NATCO brands Respiratory and asthma range.2000 Pradeep Drug company Chennai based bulk-active manufacturer2004 Phlox Pharma Bulk-active company EDMF for cefuroxime axetil

Amorphous

YEAR DEAL RATIONALE2004 Womenís First Two branded generic products

2005 Manufacturing facility , US Liquid/ointment manufacturing facility in the US.

2005 ICN Hungary Manufacturing facilities in Hungary; controlled Substances.

2005 Assets of Able Labs .

Acquired from bankruptcy for US$23.5m; sales of >US$100m before USFDA suspended operations, plant has replacement value of c.US$45m

2010 ToraPharma Largest Generic producer in US and  Israel, to acquire market share in US

2011 MSD  To bring complex or differentiated generics to emerging markets.(Other than India )

2012 DUSA Pharmaceuticals Inc Access to branded derma product

2013 Intrexon R&D in ophthalmology

2014 Ranbaxy Laboratory To increase presence in global and domestic markets

Company followed Merger and acquisition Strategy for speed growth• Sun Pharma has grown to be the Indian largest pharma co. in US

market by expanding through acquisition almost every year.• Sun pharma has a first mover advantage over rival in chronic drug

sales.• Sun Pharma international business increased after he grappled

with problem of integration with acquired companies.• They make an attempt at antibiotics, but they realized that it was

late, as other are already strong in that segment, so they bought Ranbaxy as it was already good in it.

• The decision were created based on the market feedback each of the decision were working as a separate unit, started from introducing new therapies and sale began going through the roof.

• They are concentrating on single disease, so that they could concentrate sales to a particular set of doctor

Market share of SUNPHARMA over the years

Acquisition of Ranbaxy•It will make the company the largest pharma

company in India.•The largest Indian pharma company in the US,

and the 5th largest speciality generic company globally.

•Sunpharma was making an attempt at entering into antibiotics, and Ranbaxy was already good in that.

•Ranbaxy shareholders will get four shares of Sun Pharma for every five shares held by them

Advantages of acquiring Ranbaxy•It will make the company the largest

pharma company in India.•The largest Indian pharma company in

the US, and the 5th largest speciality generic company globally.

•Sunpharma was making an attempt at entering into antibiotics, and Ranbaxy was already good in that

Diversification of business•Dilip Shanghvi invested Rs 1800 crore in

Suzlon (wind turbine maker) and got 23 per cent stake

•Shanghvi says its just a financial investment and he don't have any intentions to take over the control of Suzlon

Team that leads to speed and perfection

Mr. Israel Makav, chairman Mr. Dilip Shanghav, Managing Director

Non Executive Independent Directors

Mr. Hasmukh S Shan

Mr. Keki M Mistry

Mr. Ashwin Dani

Mr. M Mohanchandra Dadha

Ms. Rekha Sethi

Mr. Vijay Patel

What did we learn?•Update with the market that can be the

speed that sun pharma have adopted. •When growth is goal of business then

perfection will always follow that growth.•So, to conclude, Hard work, speed,

perfection and a good team will lead to shine like a sun.

•The fire inside the sun should be your objective that never goes off.