Financial Accounting Analysis on Sun Pharmaceuticals
Financial Accounting Assignment
Analysis of Financials of Sun Pharmaceuticals Industries Limited
Introduction
Sun Pharmaceuticals Industries Limited (Sun) is a leading Indian global pharmaceutical company engaged in developing, manufacturing and marketing formulations and APIs. Its business is broadly categorized in four segments – India Branded Generics (41% of revenue), US Formulations (39%), International Generics (11%) and active pharmaceutical ingredients (APIs) (9%). 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, sex hormones, and controlled substances.
Sun is the sixth largest branded generics player in India by prescription share. It is ranked first based on share of prescriptions in six classes of specialists, psychiatrists, neurologists, cardiologists, ophthalmologists, orthopaedics and gastroenterologists and is the market leader in chronic segments. In the International Generics segment, chronic therapy areas are expected to continue growing faster than the rest of the market. Sun has also initiated generic exports to select markets in Europe last year. Suns API business has presence in over 56 countries and the sales are primarily to large companies or innovator companies. They manufacture over 170 APIs and most of these complex APIs are used in the manufacture of specialty or chronic pharmaceuticals in-house.
Rising cost of R&D for new drugs, spiralling healthcare budgets and mounting governmental pressure to reduce drug prices are prompting companies to focus on the generic products business. It is expected that the share of generics in the global market will increase from 27% to 39% in 2015 whereas that of branded drugs will fall from 64% to 53%.
In India by 2020 it is expected that 73 million new households would enter
Analysis of Financials of Sun Pharmaceuticals Industries Limited
Introduction
Sun Pharmaceuticals Industries Limited (Sun) is a leading Indian global pharmaceutical company engaged in developing, manufacturing and marketing formulations and APIs. Its business is broadly categorized in four segments – India Branded Generics (41% of revenue), US Formulations (39%), International Generics (11%) and active pharmaceutical ingredients (APIs) (9%). 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, sex hormones, and controlled substances.
Sun is the sixth largest branded generics player in India by prescription share. It is ranked first based on share of prescriptions in six classes of specialists, psychiatrists, neurologists, cardiologists, ophthalmologists, orthopaedics and gastroenterologists and is the market leader in chronic segments. In the International Generics segment, chronic therapy areas are expected to continue growing faster than the rest of the market. Sun has also initiated generic exports to select markets in Europe last year. Suns API business has presence in over 56 countries and the sales are primarily to large companies or innovator companies. They manufacture over 170 APIs and most of these complex APIs are used in the manufacture of specialty or chronic pharmaceuticals in-house.
Rising cost of R&D for new drugs, spiralling healthcare budgets and mounting governmental pressure to reduce drug prices are prompting companies to focus on the generic products business. It is expected that the share of generics in the global market will increase from 27% to 39% in 2015 whereas that of branded drugs will fall from 64% to 53%.
In India by 2020 it is expected that 73 million new households would enter
References: Sun Pharmaceuticals Annual Report and Consolidated Financial Report 2010-11, 2009-10, 2008-09 Cipla Consolidated Financial Report 2010-11, 2009-10, 2008-09