SWOT Analysis of Sunpharma

SWOT Analysis

1. SWOT Analysis of SUN Pharmaceuticals ltd . ~By Pratik Rahate

2. 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.

3. About Sun Pharma

4. Sun Pharma sales across the globe.

5. Acquisitions and Joint Ventures

6. SWOT Analysis

7. STRENGTHS

8. 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.

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

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

11. 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

12. 4 th largest generics company in US. Largest generic dermatology company and 3rd largest branded dermatology company in the US . 5. Strong growth in US market

13. WEAKNESSES

14. 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

15. 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.

16. 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.

17. OPPORTUNITIES

18. 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 ?

19. 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.

20. 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.

21. 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.

22. THREATS

23. 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

24. 2. Foreign currency fluctuations Sun pharma being an exporter of pharmaceutical products, its profitability could decline because of adverse currency movements.

25. 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.

26. 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

27. THANK YOU...