SUN PHARMACEUTICALS

INDUSTRIES LTD.

Maanhvi Ralhan
06.07.2019
 ESTABLISHMENT & GROWTH
1983
Sun Pharma established by Mr. Dilip Shanghvi with
five psychiatry products and a two person
marketing team

1994
Sun Pharma launches IPO

1996
Sun Pharma expands sales network across 24
countries

2007
Sun Pharma demerges Sun Pharma Advanced
Research Company (SPARC), into a separate entity
becoming the first pure research company to be
listed on Indian stock exchanges

2013
Ranbaxy acquisition catapults Sun Pharma to
 ACQUISITIONS & ALLIANCES

1996
Sun Pharma acquires API plant from Knoll Pharma at Ahmednagar, Maharashtra, India

1997
Sun Pharma purchases equity stakes in TDPL and MJ Pharma
Sun Pharma’s first international acquisition of Caraco Pharmaceutical Laboratories, USA

1999
Sun Pharma acquires Milmet Labs and Gujarat Lyka Organics, India

2000
Sun Pharma acquires Pradeep Drug Company, India

2004
Sun Pharma acquires Phlox Pharma (India) and niche brands from Women’s First
Healthcare (US)
 2005
Sun Pharma completes buyout of manufacturing
unit in Bryan, Ohio, US
Sun Pharma acquires ICN’s business in Hungary
from Valeant Pharma
Sun Pharma acquires intellectual property and
assets of Able Labs from US District Bankruptcy
court in New Jersey

2008
Sun Pharma acquires Chattem Chemicals Inc, US

2010
Sun Pharma acquires controlling stake in Israel-
based Taro Pharmaceuticals, USA to effectively
double company's US business

2012
Sun Pharma completes two more acquisitions in
USA; Dusa Pharmaceuticals and the generic
business of URL Pharmaceuticals
 2014
Sun Pharma acquires Ranbaxy in a US$ 4 billion
landmark transaction to create world’s fifth largest
specialty generic pharma company
Sun Pharma acquires Pharmalucence in USA

2015
Sun Pharma acquires GSK’s Opiates business in
Australia
Sun Pharma acquires InSite Vision Inc. to
strengthen branded ophthalmic portfolio in USA

2016
Sun Pharma acquires 14 brands from Novartis in
Japan
Sun Pharma acquires Ocular Technologies, Sarl to
strengthen branded ophthalmic portfolio
Sun Pharma acquires branded oncology product
Odomzo® (sonidegib) from Novartis for global
markets
Sun Pharma acquires Biosintez to enhance
presence in Russian market
rs Sun Pharma has had numerous Acquisitions and Joint Ventures with the companies
 SUNOLOGY
Sunology - a combination of two words, Sun & Ideology is at the core of Sun.
Humility, Integrity, Passion & Innovation together form Sunology.
It is a way of life at Sun.

Humility Passion
•Under promise and over deliver •Infuse energy in everything that
•Let your work speak for you you do
•Always put ‘we’ before ‘me’ •Walk that extra mile
•Learn from mistakes •Inspire others
•Do your best in every situation

Integrity
•Do the right thing with conviction &
without fear
•Practice honesty, impartiality &
fairness at all times
•Adhere to strong ethical and moral
standards
•Courage to call-out what is not right
Innovation
•Strive to implement new ideas &
technologies to meet unmet needs
•Encourage others to think out-of-the-
box
•Do not limit yourself
•Believe in raising the bar every time
 VISION
Reaching People and Touching Lives Globally as a Leading
Provider of Valued Medicines.

VALUES
Quality
•Get it right the first time
Reliability
•Maintain efficiency & discipline in all
processes & systems and fulfil the promises
made to stakeholders
Consistency
•Endeavour to bring new products to the
market & consistently deliver value to
stakeholders
Trust
•Be transparent in dealings
Innovation
•Implement new ideas & technologies to meet
unmet needs and think ahead of times
BOARD OF DIRECTORS
ISRAEL MAKOV DILIP SHANGHVI
Chairman Managing Director

SUDHIR V. VALIA SAILESH T. DESAI

Non- Executive and Executive Director
Non-Independent
Director

KALYANASUNDARA VIVEK CHAAND SEHGAL

M SUBRAMANIAM Non- Executive Independent
Executive Non- Director
Independent Director

REKHA SETHI GAUTAM DOSHI

Non-Executive Non-Executive
Independent Independent Director
Director
 PRODUCT PORTFOLIO
COMPREHENSIVE, DIVERSE AND HIGHLY COMPLEMENTARY PORTFOLIO OF SPECIALITY AND
GENERIC PRODUCTS

SPAN GENERICS BRANDED GENERICS

OVER-THE-COUNTER(OTC) ANTI-RETROVIRALS(ATVs) DOSAGE

E.g. Any medicine without Prescription
E.g. Antibiotics FORMS
 Tablets
Active PharmaceuticalsIntermediates  Capsules
Ingredients (API’s)
 Injectable
 Inhalers
 Ointments
 Creams
 Liquids
MARKET SHARE

as on 5th July’19
 COMPETITOR ANALYSIS
RAN COMPANY LEADERSHIP CEO EMPLOYE TOTAL REVENUE
K SCORE ES FUNDING
Dilip S. 73/100 30,0000 $0 $4B
Shanghvi
Managing Director

1 Govindarajan 79/100 20,000 -- $2.8B

Narayanan
Managing Director

2 Sharvil P. Patel 60/100 12,227 -- $1.8B

Managing Director

3 Habil 89/100 6,768 -- $559.6B

Khorakiwala
Founder & CEO

4 Samir Mehta 75/100 14,700 $155.6M $1.1B

CEO

5 Nimish 65/100 500 -- $120M

Chudgar
CEO
RAN COMPANY LEADERSHI CEO EMPLOYE TOTAL REVENU
K P SCOR ES FUNDING E
E
6 Umang 69/10 12,235 -- $1.9B
Vohra 0
CEO

7 Heather 76/10 35,000 -- 22.3B

Bresch 0
CEO

8 F. Michael 83/10 19,000 -- $4.6B

Ball 0
CEO

9 Glenn 82/10 13,500 -- $1.2B

Saldanha 0
Managing
Director
 INDUSTRY ANALYSIS
INDUSTRY SIZE(in terms of volume and value)
The pharmaceutical sector was valued at US$ 33 billion in 2017.
The country’s pharmaceutical industry is expected to expand at a CAGR of
22.4 per cent over 2015–20 to reach US$ 55 billion.
India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have
reached US$ 15.52 billion in FY19 (up to January 2019).
Pharmaceutical exports include bulk drugs, intermediates, drug formulations,
biologicals, Ayush & herbal products and surgicals.
India’s domestic pharmaceutical market turnover reached Rs 129,015 crore
(US$ 18.12 billion) in 2018, growing 9.4 per cent year-on-year (in Rs) from Rs
116,389 crore (US$ 17.87 billion) in 2017.

Indian companies received 304 Abbreviated New Drug Application (ANDA)

approvals from the US Food and Drug Administration (USFDA) in 2017. The
country accounts for around 30 per cent (by volume) and about 10 per cent
(value) in the US$ 70-80 billion US generics market.

India's biotechnology industry comprising bio-pharmaceuticals, bio-services,

bio-agriculture, bio-industry and bioinformatics is expected grow at an average
growth rate of around 30 per cent a year and reach US$ 100 billion by 2025.
 INDUSTRY GROWTH
REVENUE AND NET INCOME, EPS GROWTH
RATE
Revenue or turnover or top line is income
that a company receives from its normal
business activities. Revenue Growth is
used to measure how fast a company's
business is expanding. The figure shows
the annual rate of increase/decrease in a
company's revenue or sales growth in
terms of percentage change from the
Compound Annual Growth Rate of Sun
previous year.
Pharmaceuticals Industries Ltd.
1 YEAR
An ideal company should have an steady
upward trend. Year-over-year REVENUE -16.12%
performance is frequently used by NET INCOME -69%
investors seeking to gauge whether a
company's financial performance is EPS BASIC -69%
improving or worsening.
 FINANCIAL ANALYSIS
SUN PHARMA Income
Statement Analysis

•Operating income during the year fell

16.1% on a year-on-year (YoY) basis.

•The company's operating profit decreased

by 44.4% YoY during the fiscal. Operating
profit margins witnessed a fall and stood
at 21.2% in FY18 as against 31.9% in
FY17.

•Depreciation charges and finance costs

increased by 18.6% YoY and 29.5% YoY,
respectively.

•Other income grew by 34.6% YoY.

•Net profit for the year declined by 66.4%

YoY.

•Net profit margins during the year

declined
SUN PHARMA Balance Sheet
Analysis

•The company's current liabilities

during FY18 stood at Rs 199 billion
as compared to Rs 179 billion in
FY17, thereby witnessing an
increase of 11.1%.

•Long-term debt stood at Rs 18

billion as compared to Rs 14 billion
during FY17, a growth of 23.4%.

•Current assets fell 4% and stood

at
Rs 316 billion, while fixed assets
rose 4% and stood at Rs 213 billion
in FY18.

•Overall, the total assets and

liabilities for FY18 stood at Rs 643
billion as against Rs 614 billion
Current Valuations for SUN PHARMA
•The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an
decline from the EPS of Rs 32.7 recorded last year.
•The price to earnings (P/E) ratio, at the current price of Rs 646.5, stands at 38.3 times its
trailing twelve months earnings.
•The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the
price to sales ratio stands at 5.1 times.
•The company's price to cash flow (P/CF) ratio stood at 37.6 times its end-of-year operating
cash flow earnings.
SUN PHARMA Share Price
Performance
Over the last one year,
 SUN PHARMA share price has
moved up from Rs 516.6 to Rs
646.5, registering a gain of Rs 129.9
or around 25.1%.
Meanwhile, the 
S&P BSE HEALTHCARE Index is
trading at Rs 15,959.5 (up 0.1%).
Over the last one year it has moved
up from 13,744.7 to 15,959.5, a
gain of 2,215 points (up 16.1%).
 CHALLENGES IN THE INDUSTRY
1. Patents 2. Pricing Issues 3. Regulatory Reforms
and Intellectual
Property Rights
India's new product patent re The prices of 74 bulk The government is now starting to develop
gime isthe drugs and their an infrastructure for clinical trials in India,
result of the WTO's Doha Rou formulations, which with amendments made recently to
nd of  Schedule Y of the
account for around
negotiations in 2001. Final Drugs and Cosmetics Rules
agreement was reached on 40 percent of the retail of 1945
TRIPs ground rules for pharmaceutical market, to allow for multicenter concurrent clinical tri
patent protection among are controlled by the Drug als in India and address the protection of
WTO member countries, Price Control Order trial participants, and the integration and
stating that both processes (DPCO) of 1995. The quality of data. Among
and products should be government's 2002 other developments, Good Clinical Practice 
protected. Pharmaceutical Policy guidelines have been published  and made
Subsequently, on March 22,  mandatory. The government is now starting
2005, India's parliament appr
would have to develop an infrastructure for clinical trials
oved the reduced the numbers of p in India, with amendments made recently to
Patents(Amendment) Act  rice- Schedule Y of the Drugs and Cosmetics
2005, bringing in a system controlled drugs still furth Rules
of product patents backdated er,  but this proposal is of 1945 to allow for multicenter concurrent
to January1, 2005. The new currently under judicial clinical trials in India and address the
regime protects only review in the Supreme protection of trial participants, and the
products arriving on the integration and quality of data. Among other
FUTURE OPPORTUNITIES IN THE INDUSTRY

Indian
pharmaceutical
market by 2020
(US $ billion)
FACTORS INFLUENCING GROWTH OF THE
INDUSTRY
 CONCLUDING REMARKS
Medicine spending in India is projected to grow 9-12 per cent over the next five
years, leading India to become one of the top 10 countries in terms of medicine
spending.

Going forward, better growth in domestic sales would also depend on the ability of
companies to align their product portfolio towards chronic therapies for diseases
such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers
that are on the rise.

The Indian government has taken many steps to reduce costs and bring down
healthcare expenses. Speedy introduction of generic drugs into the market has
remained in focus and is expected to benefit the Indian pharmaceutical companies.
In addition, the thrust on rural health programmes, lifesaving drugs and preventive
vaccines also augurs well for the pharmaceutical companies.
Exchange Rate Used: INR 1 = US$ 0.0139 as of FY19
THANK YOU