Sun Pharmaceutical: Wikis

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Sun Pharmaceutical
Type Public (BSE: 524715)
Founded Mumbai, India 1983
Headquarters Mumbai, India, India
Industry Pharmaceutical
Products Formulations & Bulk Drugs
Revenue Rs. 42.7 billion INR (2009)
Net income Rs. 18.7 billion INR (2009)
Employees 8000 (2008)
Website www.sunpharma.com

Sun Pharmaceutical (or Sun Pharmaceutical Industries Limited) (BSE: 524715 and scrip ID SUNPHARMA) is an international pharmaceutical company based in Mumbai, India. It makes many generic and brand name drugs that are distributed in the United States, Europe, Asia and worldwide.[1] Sun manufactures both pharmaceuticals and active pharmaceutical ingredients (API), in essence, ingredients to be used in finished pharmaceutical products. Its products are in several therapeutic areas, including psychiatry, neurology, cardiology, diabetology, gastroenterology, respiratory, and orthopedics.

Contents

History

Established in 1983, Sun Pharma was a start-up company with five products. Since 1996, Sun has grown largely through a combination of internal growth, and acquisition of other pharmaceutical companies. For example, it bought US-based Caraco Pharm Labs, and ICN Hungary.

A planned acquisition of Israeli Taro Pharmaceuticals initiated in March 2007 was terminated by the Taro board in May 2008;[2][3] this was subsequently followed by an unsolicited tender offer in June 2008, the outcome of which remains to be determined.[4]

As of 2008, it has grown to become an international speciality pharma company with more than 8000 employees, 19 manufacturing locations worldwide, two research centers, and a presence in 30 countries. It is one of the leading Indian-based pharma companies in India.[5]

Corporate structure

The company's overall management is the responsibility of its Board, whose members are

Dilip S. Shanghvi, Chairman and Managing Director. Mr. Shanghvi founded the company in 1982.

Sudhir V. Valia Executive Director

Sailesh T. Desai Executive Director

Hasmukh S. Shah Non-Executive Independent Director

Keki M. Mistry Non-Executive Independent Director

Ashwin Dani Non-Executive Independent Director

S. Mohanchand Dadha Non-Executive Independent Director

Mergers and acquisitions

Acquisitions formed a major part of the company's growth[6], starting with the purchase of Knoll Pharma's bulk actives manufacturing business based in Ahmednagar in 1996. It was upgraded for approvals from regulated markets, with substantial capacity addition over the years. In that year, Sun also took a step to break into the important U.S. healthcare market, with its purchase of stake in Detroit-based Caraco Pharmaceutical Laboratories, which specialized in the manufacture of generic dosage form medications and gave Sun its first production plant approved by the U.S. Food and Drug Administration (USFDA). Also in 1996, Sun purchased a shareholding in Gujarat Lyka Organics, which brought Sun a USFDA-approved manufacturing facility.

The acquisition drive continued and in the same year it purchased a stake in MJ Pharmaceuticals Ltd., based in Halol. MJ Pharma brought Sun its strong insulin production, as well as a springboard for entry into the European market. In 1997, TDPL, a company with an extensive product offering (oncology, fertility, anesthesiology, pain management) got merged with Sun. TDPL's products offer a ready entry with known brands and customer equity into new high growth therapy areas like oncology and gynecology.

In 1998, the company expanded its line with the purchase of a number of brands from Natco Pharma, adding some Rs 500 million to its sales. The Natco brands gave the company new products in the gastroenterology, orthopedics, pediatrics, and other categories, as well as access to Natco's time-release technology. Sun bought Milmet Labs, enabling the company to enter the ophthalmology products market for the first time. At the end of 2001, the company merged its MJ Pharmaceuticals subsidiary into its core operation at the beginning of 2002.

By 2002, it had boosted its bulk actives business with the purchase of Madras-based Pradeep Drug Company Ltd. In 2004, Sun acquired a Cephalosporin Actives manufacturer, Phlox Pharma, with European approval for cefuroxime axetil amorphous. Niche brands are bought from the San Diego, US based Women's First Healthcare. In 2005, Sun bought a plant in Bryan, Ohio, US and the business of ICN, Hungary from Valeant Pharma.Sun acquired the intellectual property and assets of Able Labs from the US District Bankruptcy court in New Jersey in December 2005.In May 2007, Sun along with our subsidiaries, signed definitive agreements to acquire Taro. Pharmaceutical Industries Ltd., a multinational generic manufacturer with established subsidiaries, manufacturing and products across the U.S., Israel, and Canada for $454 million

Key Acquisitions & Rationale

Year Country Acquisition
2008 US Caraco acquired some products of Forest’s Inwood business
2008 Tennessee, US Acquired Chattem Chemicals, Inc.
2005 New Jersey, US Assets of Able labs
2005 Ohio, US Formulation plant in Bryan
2005 Hungary Acquired ICN Hungary
2004 US Womens Health Brands
2004 Baroda, India Merged Phlox Pharma
2000 Chennai, India Merged Pradeep Drug Company Ltd (PDCL)
1999 India Merged Milmet Labs
1998 India Brands from Natco
1997 Detroit, US Acquired Caraco
1997 Chennai, India Merged Tamilnadu Dadha Pharmaceuticals Ltd (TDPL)
1996 Halol, India Acquired MJ Pharma
1996 Ankleshwar, India Acquired Gujarat Lyka
1996 Ahmednagar, India Bulk Drug plant from Knoll Pharma

Raids by USFDA

On 25 June 2009, US Marshals seized 33 drugs made by Caraco, the subsidiary of Sun Pharma. The seizure was due to the noncompliance of Caraco with the Current good manufacturing practice (cGMP) requirements of the U.S. Food and Drug Administration (USFDA). The seizure was followed by an 18% drop in price of Sun Pharma.[7]

References


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