A Profile of Sun Pharma · A Profile of Sun Pharma Listed by Forbes at 38th amongst the world’s...
Transcript of A Profile of Sun Pharma · A Profile of Sun Pharma Listed by Forbes at 38th amongst the world’s...
1
A Profile of Sun Pharma
Listed by Forbes at 38th amongst the world’s 50 most innovative companies, we’re an
international specialty pharmaceuticals company (2011-12 Revenues $1.6 billion, PAT $540
million, Market capitalization in November 2012 over $12.4 billion). Shareholder wealth has
multiplied manifold: Rs.1000 invested in the IPO in 1994, has grown to over Rs. 314,000.
Revenue mix
India and US are our predominant markets, and account for over 79% of sales. We also sell
in forty other markets-- in all, international markets account for a 62% of revenues (5 year
CAGR 39%).
Indian formulation, sales of specialty prescription brands in India, is 36% of revenues (5
year CAGR 20%). US generics are 43% of revenues (5 year CAGR 46%). International
formulations, ex US, are 14% of revenues. (5 year CAGR 41%). Specialty API sales, across
India and international markets are 7% of revenues.
Marketing strengths – India
Our market share in India has moved from less than 1% in 1994 (when we were first listed
on the exchanges) to one amongst the top three, at 4.7% of the Indian market (AWACS -
AIOCD Ltd Stockist Data Audit, September 2012). With 6 classes of specialists, we’ve been
ranked as the number 1 company by prescription share (SMARC Audit April – June 12).
We were the first to pioneer therapy-focused marketing divisions, and today seventeen
marketing divisions (3300 representatives) address niche areas like psychiatry, neurology,
cardiology, diabetology, gastroenterology, orthopedics and ophthalmology. Five core
therapy areas account for over 75% of our domestic prescription sales, and feature drugs
like Lipodox (liposomal doxorubicin), Octride (octreotide), Lupride ( lupreolide depot), to
name a few on our 600+ list.
In order to bring our customers the latest therapies, every year we develop and introduce
around 30 new branded generics; most of these are based on internally sourced API. Over
half of these products are technically complex, or use a differentiated delivery system.
Most of our brands are ranked among the top 3 for that molecule.
US generics
2
We are present in the US generic market (2011-12 Revenues $ 730 million) directly, as
well as through two subsidiaries, Caraco, and Taro (NYSE TARO, market capitalization USD
2. 05 billion). Over the last decade, we’ve built up a significant presence in areas such as
dermatologics and controlled substances among the 259 ANDAs approved. Additionally,
136 ANDAs await approval, including 17 tentative approvals. With several plants in the US,
as well as USFDA approved plants in India, we have the flexibility of manufacturing offshore
or in the US (see: Manufacturing).
Marketing strengths- Emerging markets
The fastest growing part of our business relates to the sales of our ethical prescription
brands in 40 countries across the erstwhile CIS, China, and South East Asia, some countries
in Middle East and Africa, with a recent entry in the South American markets of Brazil,
Mexico, Peru and Columbia. A well-trained representative force promotes these specialty
brands for a prescription pull. Recently, we created a joint venture with MSD (Merck) to
develop and bring differentiated branded generics to emerging markets.
Marketing: Specialty APIs
Specialty APIs that address niche therapy areas are sold to large companies in Europe and
Latin America. Every year over 20 APIs are scaled up, both for internal use and the
international markets. Starting with just 2 products in 1995, the API list now numbers over
275, with all the processes developed in house. 229 interesting filings for US and Europe
have been made from these plants and are either approved or await approval.
Research & Development
We were the earliest among Indian companies to realize the advantage of investments in
research, with over $ 550 million invested so far, and typically 6% of revenues invested
each year. These investments have helped us differentiate with technology and create a
strong basket of products across markets. Some of these, like the anticancer Lipodox, or
the cancer therapy adjuvant Cytofos are the first or only generic copies available.
Based on the intellectual property we’ve created, 645 patents have been filed and 304
patents have been received. R&D projects are pursued at our research centers, SPARC (Sun
Pharma Advanced Research Center), in Baroda and in Mumbai, and at Taro’s research
centers in Israel and Canada.
Manufacturing
3
We make products across 24 plants, of which 15 are approved by the USFDA or
European authorities.
Eight of our plants produce APIs, including separate suites to manufacture of high value
peptides, steroids, anti-cancers and hormones--enabling us to be completely integrated for
these products.
A range of solid oral dosage forms, injectables and other dosage forms is manufactured at
fifteen plants, of which three are in the US and one in Canada.
4
Board
Israel Makov - Chairman
Mr. Israel Makov is the former President and CEO of Teva Pharmaceutical Industries Ltd. He joined Teva in 1995
and led the company's global expansion, managing over 12 acquisitions, two of which were the largest M&A
deals in Israeli history at the time. Prior to joining Teva, Mr. Makov led a number of companies in various
industries, and founded Israel's first biotech company, Interpharm, which was the first Israeli company at the
R&D stage to go public in the United States.
Currently, Mr. Israel Makov is Chairman of Given Imaging, a pioneer developer and the world's leading provider
of capsule endoscopy; Chairman of Biolight, a life sciences investment company; Chairman of Micromedic
Technologies Ltd., a cluster of companies engaged in cancer diagnostics, and Chairman of Eltav, a pioneer of
wireless monitoring of industrial valves. Until recently, Mr. Makov was also Chairman of Netafim, a smart
irrigation solutions company. His other notable engagements include member of the Board of Directors of the
Israel National Nanotechnology Initiative, a member of the Executive Board and Management Committee of the
Weizmann Institute of Science and a member of the Board of Governors of the Technion Israel Institute of
Technology. Mr. Israel Makov holds a B.Sc. in Agriculture and M.Sc. in Economics from the Hebrew University,
Jerusalem.
5
Dilip S. Shanghvi - Managing Director
Mr. Dilip S. Shanghvi is the founder of Sun Pharmaceutical Industries Ltd. and has extensive industrial
experience in the pharmaceutical industry. A first generation entrepreneur, Mr. Shanghvi has won numerous
awards and recognitions, including CNN IBN’s Indian of the Year (Business) (2012), Business India's
Businessman of the Year (2012) and Ernst and Young's World Entrepreneur of the Year (2011). He has also been
awarded the Economic Times' Entrepreneur of the Year (2008), Business Standard’s CEO of the Year (2008) and
CNBC TV 18's First Generation Entrepreneur of the Year (2007).
Mr. Shanghvi is also Chairman and Managing Director of Sun Pharma Advanced Research Company Ltd., and
Chairman of the Shantilal Shanghvi Foundation. He holds a B.Com. from Kolkata University.
6
Sudhir V. Valia - Executive Director
Mr. Sudhir V. Valia is a Member of the Institute of Chartered Accountants of India and carries more than three
decades of taxation and finance experience. He has been a director of Sun Pharma since the inception of the
company and is also on the board of Taro Pharmaceuticals Ltd...
Mr. Valia has won CNBC TV18's CFO of the Year in the Pharmaceutical and Healthcare Sectors for two
consecutive years (2011 and 2012). He has also been awarded the Adivasi Sevak Puraskar (2008-09) by the
Government of Maharashtra for his contribution towards the welfare of tribals, particularly in the field of
education in his capacity as director of the Shantilal Shanghvi Foundation.
7
Sailesh T. Desai - Executive Director
Mr. Sailesh T. Desai has more than 28 years of industrial experience, 18 of which have been in the
pharmaceutical industry. Mr. Desai has had comprehensive corporate affairs experience, being involved in the
turnaround at Milmet prior to Sun’s acquisition as well as in the early stages of the company's growth. He holds
a B.Sc. from Kolkata University
8
Hasmukh S. Shah - Non-Executive Independent Director
Mr. Hasmukh S. Shah has had over four decades of experience in senior management, most notably as former
Chairman and Managing Director of Indian Petrochemical Corporation Ltd...
Mr. Shah is Chairman of Gujarat Gas Company Ltd. as well as the Vice Chairman of GE Capital and advisor to GE
in India. He has had wide experience in various government departments, including as Joint Secretary to the
Prime Minister, as Secretary of Post and Telegraph, as Chairman of the National Institute of Design, the Institute
of Rural Management, Anand and the Gujarat Council of Science & Technology. He has been Chairman of the
Gujarat Ecology Commission, the Gujarat Institute of Desert Ecology, the Center for Fuel Studies and Research,
the Expert Committee on Disinvestment (Government of Gujarat), the Advisory Committee on Natural Gas,
Government of Maharashtra and the Vikram A. Sarabhai Community Science Centre.
He has been member of the Board of Governors of the Indian Institute of Technology, Powai, and is a member
of the BAIF Board of Trustees. He is also a member of the Governing Council at the Dhirubhai Ambani Institute
of Information and Communication Technology.
Mr. Shah has been Chairman of the Board at Shaily Engineering Plastics Ltd. and Director on the Boards of
Supreme Petrochemicals Ltd., Atul Ltd., Deepak Nitrite Ltd., Microinks Ltd., Cosmo Films Ltd., Dinesh Remedies
Ltd., Taro Pharmaceutical Industries Ltd., and advisor to British Gas India.
9
Keki M. Mistry - Non-Executive Independent Director
Mr. Keki Mistry is Vice Chairman and CEO of the Housing Development Finance Corporation Ltd., one of India’s
leading housing finance providers. He has been actively involved in setting up several HDFC group companies
including HDFC Bank. Mr. Mistry is also Non-Executive Chairman of Gruh Finance Ltd. He has been deputed on
consultancy assignments for the Commonwealth Development Corporation (CDC) in Thailand, Mauritius and
the Caribbean Islands. He has also worked as a consultant for the Mauritius Housing Company and Asian
Development Bank.
He holds directorships for the following companies: HDFC Developers Ltd., Shrenuj and Company Ltd., HDFC
Standard Life Insurance Corporation Ltd., HDFC ERGO General Insurance Corporation Ltd., Infrastructure
Leasing and Financial Services Ltd., The Great Eastern Shipping Company Ltd., NexGen Publishing Ltd., HDFC
Asset Management Company Ltd., Greatship (India) Ltd., Intelenet Global Services Ltd., Griha Investments
(Mauritius), Association of Leasing and Financial Services Companies, India Value Fund Advisors Private Ltd. and
Torrent Power Ltd. He serves as director of the Bombay Chamber of Commerce and the Bombay Stock
Exchange.
Some of his recent recognitions include the CFO India Hall of Fame by the CFO Magazine in 2012, CA Business
Achiever of the Year award in the Financial Sector by the Institute of Chartered Accountants of India (ICAI) in
2011, Best CFO in the Financial Services category by the ICAI in 2008, Best Performing CFO in the financial
services sector for three consecutive years (2006, 2007, 2008) as well as CFO of the Year in 2008 by CNBC TV18
and Best Investor Relations Officer in the Corporate Governance poll by Asiamoney in 2008. Mr. Mistry holds a
B. Com degree in Advanced Accountancy and Auditing from the University of Mumbai and is a Chartered
Accountant. He is a Fellow of the Institute of Chartered Accountants of India and is a Member of the Michigan
Association of Certified Public Accountants.
10
Ashwin Dani - Non-Executive Independent Director
Mr. Ashwin Dani is Vice Chairman of Asian Paints Ltd., the largest paint manufacturing company in India. Mr.
Dani is on the board of Wockhardt Hospitals Ltd., Asian Paints Ltd., Asian PPG Industries Ltd., Rangudyan
Insurance Broking Services Ltd. and Geetanjali Trading and Investments Private Ltd. and has been President of
the Board of Governors of the U.D.C.T. Alumni Association, Mumbai and President of the Indian Paint
Association (IPA). Mr. Dani has been nominated by the government as a Trustee on the Central Board of
Trustees of the Employees Provident Fund. He is also a member of the executive committee of the Federation
of Indian Chambers of Commerce and Industry (FICCI).
Mr. Dani has been awarded the Cheminor Award from the Indian Institute of Materials Management for
excellence in Supply Chain Management and Achiever of the Year award in the Chemical Industry by the
Chemtech Foundation. Mr. Dani holds a Bachelor of Science (Hons) Degree from the Institute of Science,
University of Bombay and Bachelor of Science (Tech) (Pigments, Paints & Varnishes) from U.D.C.T., University of
Bombay. He also holds a Masters Degree in Polymer Science from the University of Akron, Ohio and a diploma
in Color Science from Rensellaer Polytechnic, New York.
11
S. Mohandchand Dadha - Non-Executive Independent Director
Mr. Mohanchand Dadha is an entrepreneur with more than five decades of experience in the pharmaceutical
industry in India. Mr. Dadha has been the Founder and Managing Director of the erstwhile Tamilnadu Dadha
Pharmaceuticals Limited. He is also a Trustee on many charitable trusts. He has been Member of the Tamilnadu
Government constituted Drug Committees, namely The Drug Advisory Committee and the Committee for the
Development of Drug Industries in Tamilnadu. Presently, he is also a Director in Sun Pharma Advanced
Research Company Limited, Wardex Pharmaceuticals Limited, Dadha Pharma Private Limited, and Kerala
Chemists and Distributors Alliance Limited. He is Chairman of the Audit Committee and Remuneration
Committee of Sun Pharma Advanced Research Company Limited.
12
Financials
Figures for the year 2011-12
13
Image Gallery
Corporate Logo
14
Sun Pharma Headquarters in Mumbai
15
Sun Pharma R&D Center Baroda
16
Sun Pharma Manufacturing