Sun Pharma Provides Business Update
Sun Pharmaceutical Industries has provided the following business update.
Following the acquisition of Ranbaxy, the company has embarked on various consolidation initiatives globally to drive future growth and profitability and to enhance long-term shareholder value. These include
• Investing for future — continue to strengthen and build leadership position in key markets and business
segments. As a part of the company's focus towards enhancing share of specialty/branded business and targeting differentiated product offerings, it has recently strengthened its ophthalmology and OTC teams in the US as well as formed a dedicated team for MK-3222, the company's IL-23 anti-body which is currently undergoing Phase-III clinical trials. Sun Pharma will simultaneously continue to explore opportunities to expand its global footprint.
• Profitability — the company's target for the synergy benefits from the Ranbaxy acquisition has increased by 15–20% as compared to our original target of US$ 250 million by FY18. This will be achieved by focusing on overall profitability improvement driven by revenue and procurement synergies, manufacturing rationalization and various additional cost-management measures.
• R&D — the company will continue to allocate significant resources to R&D to strengthen the specialty pipeline including patented products and complex generics. This will mandate increased R&D investments including that for the development of MK-3222.
• cGMP compliance — A key priority is to ensure continued 24x7 cGMP compliance by continuously
enhancing systems, processes and human capabilities to meet global regulatory standards at all our
manufacturing facilities. As a part of this process and to address the cGMP deviations at its Halol
facility, the company has undertaken various remedial measures, which have resulted in supply constraints for some of the products. The company expects this situation to continue for some more time till all the remedial steps at Halol are completed. The remedial action at the Mohali, Dewas, Poanta Sahib and Toansa facilities is on track. Sun Pharma is working towards the fulfilment of the requirements of the US consent decree and will try to expedite the resolution for at least one of these facilities.
• Ranbaxy integration — as a part of the integration process, the company expects to incur certain integration charges in order to generate long-term synergies from this merger. Also, as a part of the integration process, the company may decide to discontinue certain non-strategic businesses.
• Revenue Growth — post this consolidation, the company believes it will be better placed to pursue higher than industry growth in subsequent years.
However, these measures are likely to adversely impact the overall revenues and profits of the company for FY16 as indicated below:
• Consolidated revenues — to remain flat or show a decline over FY15.
• Consolidated profits — in addition to the above revenue impact, profits may also be adversely impacted due to certain expenses/charges arising out of integration as well as remedial actions.
The above initiatives will help the company revert to a more sustainable growth trajectory post FY16.
Related News
-
News Patients vs Pharma – who will the Inflation Reduction Act affect the most?
The Inflation Reduction Act brought in by the Biden administration in 2022 aims to give better and more equitable access to healthcare in the USA. However, pharma companies are now concerned about the other potential costs of such legislation. -
News CPHI Podcast Series: What does the changing US Pharma market mean for industry and patients alike?
In this week's episode of the CPHI Podcast Series Lucy Chard, Digital Editor for CPHI Online is joined by James Manser to discuss the political and market changes in the US pharma field. -
News CPHI Barcelona Annual Report illuminates industry trends for 2024
The CPHI Annual Survey comes into it’s 7th year to report on the predicted trends for 2024. Over 250 pharma executives were asked 35 questions, with their answers informing the industry landscape for the next year, spanning all major pharma marke... -
News Which 10 drugs are open to price negotiation with Medicare in the USA?
The Centres for Medicare & Medicaid Services, under the Biden administration in the USA, has released a list of the 10 drugs that will be open to price negotiations as part of the new legislation under the Inflation Reduction Act (IRA). -
News EU Medical Devices Regulation causes unintended disappearances of medical devices for children, doctors state
Doctor groups and associations have appealed to the EU to correct the EU Medical Devices Regulation law that may cause unintended shortages of essential drug and medical devices for children and rare disease patients. -
News 10 Major Drug Approvals So Far in 2023
Last year, 37 novel drugs were approved by the FDA, this was a high number for such a category, and covered many fields including oncology, demonstrating how promising further research is, and how it is only continuing to build. To date, there are alre... -
News Detecting Alzheimer's disease with a simple lateral flow test
A novel rapid diagnostic test for early-stage Alzheimer's disease has been developed using a biomarker binder from Aptamer Group along with technology from Neuro-Bio, the neurodegenerative disease experts. -
News CPHI Podcast Series: outsourcing and manufacturing trends
Listen to the CPHI Podcast Series this June to hear Gil Roth of the PBOA speak with Digital Editor Lucy Chard about the biggest trends and topics to watch in pharma outsourcing and manufacturing at the minute.
Position your company at the heart of the global Pharma industry with a CPHI Online membership
-
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
-
Generate high-quality, engaged leads for your business, all year round
-
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
-
Your company’s profile boosted at all participating CPHI events
-
An easy-to-use platform with a detailed dashboard showing your leads and performance