NSE Symbol: SUNPHARMA | BSE Code: 524715
Sun Pharmaceutical is a premier medicine provider in India and worldwide. In 1983, Dilip Shanghvi founded the company; the company principally deals in medicines about diabetology, cardiology, neurology, et cetera. In the 50 years since its establishment, the Sun Pharma has incorporated manufacturing units across the globe and completed several acquisitions in the process. Apart from providing formulations that are used in tablets, creams, capsules, et cetera, the company has also developed its range of Active Pharmaceutical Ingredients (API). Their market share in India is presently the highest while in the US; they are in the fifth place. The company's vision is to touch lives globally as a leading provider of valued medicines.
In 1983, the Sun Pharmaceuticals was established by Mr. Shanghvi in Vapi. He began the company with just five products to treat disorders related to psychiatry, at the time. During that decade, the products related to cardiology and gastroenterology were also launched. As the company expanded, it started manufacturing products in other therapy areas as well, like neurology, gynecology, oncology, et cetera. It has also set up its R&D division knowing the importance of researching the field of medicines.
Sun Pharma has also set up API and formulation plants across the globe as per the international standards. The company have also been approved by USFDA and UK MHRA (Regulatory agency related to medicine and healthcare.
The company is traded on the two major stock exchanges in India - NSE, and BSE. The Sun Pharmaceutical Industries is also part of the other major market indices in India like BSE SENSEX and NIFTY 50. Though there are many pharma companies on NIFTY, only two pharma companies are on SENSEX with Sun Pharma being one of them. Along with these indices, the Sun Pharma is also a part of S&P CNX 500, BSE 100 and BSE 200.
Israel Makov - Chairman
Mr. Makov worked as the President and CEO of Teva Pharmaceutical Industries Limited before joining the Board of Directors of Sun Pharma as the Chairman. He served Teva Pharmaceutical for more than 13 years during which, he led the way for the company's worldwide expansion and made it the global leader in generic pharmaceuticals. He is also the founder of the Interpharm - Israel's first biotech company. All these accomplishments have made him one of the most respected corporate leaders in Israel.
His alma mater is Hebrew University, Jerusalem, where he attained a B.Sc. in Agriculture and M.Sc. in Economics.
Dilip Shanghvi - MD
Mr. Shanghvi is the founder and MD of Sun Pharmaceutical. While he was working with his father as a pharmaceutical distributor in Kolkata, he got the idea of manufacturing medicines. He initiated Sun Pharmaceutical in 1983 after getting B.Com. Degree from the Calcutta University, with a capital of Rs.10,000. Due to his relentless pursuit to become the largest pharma company in India, he was honored with several awards including the Padma Shri in 2016.
In the report for the third quarter of Fiscal 2018, the Sun Pharma reported overall sales and income to worth Rs.6,598 crore.
Except for the US operations, the sales in all other regions of the world have increased considerably. In India, sales for the Q3 were reported to be at Rs.2,085 crore - a 6% increase over third quarter of FY17 sales.
Emerging Markets has recorded a steady increase in sales as well, with the number standing at Rs.1,221 crores, in contrast to Rs.1,160 crores in Q3 FY17.
As for the investments made towards R&D have been reduced to Rs.473 crore from Rs.613 crore for Q3 FY17. These funds are for financing the development of Sun Pharma's 'Global Specialty Pipeline.'
The decline in sales in the US market is mainly because of the decrease in sales of generic Imatinib and Olmesartan authorized generics.
The net profit for this quarter was reported at Rs.365 crore, while the net profit was at Rs.878 crore. The differences between the two figures are because of the one-time tax adjustment which was done following the US tax rates.
Sun Pharma has also planned a through product offering in the US market. ANDAs (Abbreviated New Drug Application) has been approved for 418 products by the United States Food & Drug Administration (FDA), while 126 ANDAs are awaiting approval.
Sun Pharma is one of the prominent pharmaceutical companies across the globe and became the biggest pharma company in India after the acquiring Ranbaxy. The Sun Pharma has more than 40 manufacturing facilities across the world, including India, Australia, Malaysia, Africa, and the United States. These facilities have been inspected by the proper authorities, along with USFDA. The Sunpharma has positioned themselves to focus on markets in Brazil, Russia, Romania and South Africa.
Sun Pharma's market share in India has been increased considerably over the years. As of December 2017, the market share of Sun Pharma is 8.5%. More than 40% of their revenues come from the US market.
It is witnessed that the company is built on firm foundations and ready to become a global leader in the pharmaceutical world. A high Profit/Earning ratio recommends that the stock may be overpriced, but after looking at their recent ventures and acquisitions, many experts will agree that buying this stock is worth for a long-term investment goal. However, research before taking any decision as the US FDA inspects the manufacturing units in India.
Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.