sun pharma.docx

7/26/2019 Sun Pharma.docx

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Sun PharmaSun Pharma was established in 1983 at Vapi by Mr Dilip Sanghavi along with 5people. nitially it had !ive produ"ts and today it is the #ndlargest player in the ndianmar$et. Mr. Sanghvi had a !air idea o! the industry sin"e he was already dealing inwhole%selling medi"ine business &e rightly identi!ied a gap in the Psy"hiatri"

Medi"ine industry and hen"e used it to "reate value by developing a produ"t in this"ategory thereby enabling him to be"ome a mar$et leader.

'ill #(1)* Sun Pharma has a"+uired about 18 "ompanies globally ranging !rom ,nollPharma o! -urat to -eneri" /usiness o! 02 Pharma"euti"al. s a result DilipSanghvi be"ame the 5thri"hest person in the world in #(13 with a wealth o! 11 billiondollars

/e!ore a"+uisition* Sun Pharma has a produ"t line o! 5(( produ"ts with 54 mar$etshare and #.5 billion revenue and was the # ndlargest Pharma"euti"al 6ompany inndia and was the mar$et leader in 7 produ"t "ategories. lso it was the 5 thlargest

spe"iality generi" pharma"euti"al "ompany in the world0S mar$et has been the biggest mar$et !or Sun Pharma"euti"al "ontributing toabout (4 o! the total revenue whereas the ndian mar$et "ontributes around #34.Mr Sanghvi wanted to !urther grow the "ompany inorgani"ally hen"e was loo$ing!or prospe"tive a"+uisition target and hen"e de"ided to a"+uire anba:y due to"omplimentary produ"t range* diversi!ied mar$et a""ess and various other synergies.

Ranbaxyanba:y was established in 1937* by two brothers named anit and -urba: Singhas a drug distribution "entre but was soon a"+uired in 19)7 by /hai Mohan Singhwho had lend money to the two brothers who !ailed to return the same. /hai MohanSingh has prevented # hostile ta$eovers attempts on the "ompany by !ormer ownersthemselves and 2apetit !rom taly.

0nder his leadership* anba:y was established as a "ompany in 191with its !irstblo"$buster produ"t named 6almpose in 199. ;rom 199 to 198( the "ompanygrew organi"ally and was ta$en over by /hai Mohan


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Moreover* in #(13* the "ompany was !ound guilty to !raudulent a"tivity and hen"ewas posed with a !ine o! over 5(( million. 'his had a severe impa"t on the anba:yas a /rand. s a result it be"ame a burden on the Daii"hi San$yo and they were"ontemplating the ne:t move. 'hey were rethin$ing about their de"ision to ventureinto the ndian mar$et through anba:y whi"h had ba"$!ired. s a result* they

wanted to e:it !rom this pain!ul allian"e and Sun Pharma "ame to their res"ue.

Pharmaceutical industry in Indiandian pharma"euti"al industry is the )thlargest pharma"euti"al industry in the worldwith total revenues o! more than 3) billion. ;igure 1 in C:hibit 1 shows the top 1(players in this industry based on 2'M revenue and mar$et "apiltralisation. 'hedriving !a"tors in the pharma"euti"al industry are in"reasing middle "lass* si=ablein"rease in the in"ome o! the people and the in"reasing awareness about health"areand hen"e it is e:pe"ted to rea"h 0SD )8 billion by #(17%18 with a 6- o! around1)4. ndian !ormulation sales volume is only 1(.9 billion. ndian pharma"euti"alindustry is highly !ragmented with more than 15(( players in the mar$et. 'he

!ormulation industry is dominated by a !ew players with top 1( players providing)#.34 o! the sales volume o! total !ormulation industry sales. 'he pharma"euti"alindustry "an be broadly "lassi!ied into !ollowing ) segments

1 API manufacturer/ Traders (Bulk drug)"tive pharma"euti"al ingredient is manu!a"tured using basi" raw material byboth physi"al "hemi"al means. 'P and Dr. eddy


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%"luti"n "f 'harmaceutical industryndian pharma"euti"al industry "an broadly be "lassi!ied into # domains

Pre-patent regime (before 2005)

Due to the absen"e o! patent* MF6s were threatened to introdu"e any new produ"tin ndian mar$et in this period whi"h eventually led to the enhan"ement o! ndianown pharma"euti"al "ompanies.

s per ndian Patent "t* 197( Patents were based on the pro"ess innovationrather than new drug introdu"tion whi"h en"ouraged ndian industry to gete:pertise in pro"ess "hemistry

lso* Drug Pri"e 6ontrol Erder @DP6EA* 197( ensured a pri"e "ontrol on the bul$drugs to ma$e it available !or the wider audien"e at a reasonable pri"e.

s a result* introdu"tion o! new produ"ts in !ormulation segment by MF6 wasimpa"ted by the said

Post-patent regime (Post 2005)

n line with ndia


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C:hibit 1

;igure 1 'op 'en Players in Pharma"euti"al ndustry a""ording to 2'M Mar$et6apitalisation

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