EXECUTIVE SUMMERYSun Pharma, established in 1983, makes specialty pharmaceuticals and APIs for use inChronic therapy areas such as cardiology, psychiatry, neurology, gastroenterology, diabetes and respiratory conditions, sold in 26 markets worldwide. Sun Pharma enjoys a good market share in pharmaceutical industry. Sun Pharma is build of four different companies that are Caraco Pharmaceutical Laboratories, Sun Pharmaceutical Industries Inc. (SPI), Sun Pharmaceutical (Bangladesh) and Alkaloida Chemical Company Exclusive Group Ltd.In first section of my report I had given brief information about pharmaceutical industry and in second section I had given brief information of Sun Pharmaceutical Industries.1
INDIAN PHARMACEUTICAL INDUSTRIES2
Introduction to Indian Pharma IndustryA glance look at Indian Pharmaceutical Industry:India currently represents just U.S. $6 billion of the $550 billion global pharmaceutical industry but its share is increasing at 10 percent a year, compared to 7 percent annual growth for the world market overall. Also, while the Indian sector represents just 8 percent of the global industry total by volume, putting it in fourth place worldwide, it accounts for 13 percent by value, and its drug exports have been growing 30 percent annually.The “organized” sector of India's pharmaceutical industry consists of 250 to 300 companies, which account for 70 percent of products on the market, with the top 10 firms representing 30 percent. However, the total sector is estimated at nearly 20,000 businesses, some of which are extremely small. Approximately 75 percent of India's demand for medicines is met by local manufacturing.According to the German Chemicals Association, in 2005, India's top 10 pharmaceutical companies were Ranbaxy, Cipla, Dr. Reddy's Laboratories, Lupin, Nicolas Piramal, Aurobindo Pharma, Cadila Pharmaceuticals, Sun Pharma, Wockhardt Ltd. and Aventis Pharma. Indian-owned firms currently account for 70 percent of the domestic market, up from less than 20 percent in 1970. In 2005, nine of the top 10 companies in India were domestically owned, compared with just four in 1994.India's potential to further boost its already-leading role in global generics production, as well as an offshore location of choice for multinational drug manufacturers seeking to curb the increasing costs of their manufacturing, R&D and other support services, presents an opportunity worth an estimated $48 billion in 2007. 3Indian Market EvolutionEarly Phase (1950-75)Mid Phase (1975-2000)Recent Phase (2000-)Small Scale UnitsMedium / Large Scale UnitsEmergence of Indian origin MNCsMarket Dominated by MNCsGrowing share of Indian entitiesGlobal scale of operations of Indian pharmacosManufacture of bulk (largely public sector) and import of formulationsManufacture and marketing of bulk drugs and formulationsFormulations / Generics for the world marketInward outlook for marketsPrimarily domestic orientation, nominal export presenceStrong export focus, domestic consolidations.