MIRA
INFORM REPORT
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Report Date : |
27.10.2008 |
IDENTIFICATION DETAILS
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Name : |
SUN PHARMACEUTICAL INDUSTRIES LIMITED |
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Registered Office : |
Sun Pharma
Advance Research Centre (SPARC), |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
01.03.1993 |
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Com. Reg. No.: |
04-19050 |
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CIN No.: [Company
Identification No.] |
L24230GJ1993PLC019050 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDS02426E |
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PAN No.: [Permanent
Account No.] |
AADCS3124K |
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Legal Form : |
Public Limited Liability
Company. The Company's Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of
Tablets, Capsules, Parenterals, Ointments, Bulk Drugs, Chemicals and Liquids. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 200000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed pharmaceutical company having fine track. Available
information indicates high financial responsibility of the company. Business
is active. Payments are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Sun Pharma
Advance Research Centre (SPARC), |
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Tel. No.: |
91-265-2340001 /
282111822 / 1842 / 1917 / 1951 / 195 / 5515500 / 600 / 700 |
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Fax No.: |
91-265-2339103 /
28212010 / 2354897/ 2332664 |
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E-Mail : |
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Website : |
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Corporate
Office : |
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Tel. No.: |
91-22-28211822 /
1842 / 1917 / 1951 / 1953 |
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Fax No.: |
91-22-28212010 |
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E-Mail : |
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Research
Centre : |
·
Sun Pharma Advanced Research Centre (SPARC), ·
F.R27, Part Survey No. 27, C. S. No. 1050, T.
RS. Village, Tandalja, District Vadodara - 390 020, ·
17-B, Mahal Industrial Estate, |
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Plants : |
·
C1/2710, GIDC, Phase III, Vapi – 396 195, ·
Plot No. 214 and 20, Government Industrial
Area, Phase II, Piparia, Silvassa – 396 230, ·
Plot No. 25and 24/2, GIDC, Phase IV, Panoli –
395 116, ·
A-7 and A-8 MIDC Industrial Area, Ahmednagar –
414 111, ·
Plot No. 4708, GIDC, Ankleshwar - 393 002, ·
Plot No. 223, Span Industrial Complex, Dadra –
396 191 ( ·
·
·
Plot No. 817/A, Karkhadi, Taluka: Padra,
District Vadodara – 391450, · Sun Pharma Industries* Survey No. 259/15, Dadra-396 191 (U.T.Of D.and NH) · Sun Pharma Industries* 6-9, Export Promotion,
Industrial Park (EPIP), Kartholi, · Sun Pharmaceutical Industries Inc. · Sun Pharmaceutical Industries Inc. · Caraco Pharmaceutical Laboratories Ltd. I ·
Sun Pharmaceutical ( Chandana, Joydevpur, · Alkaloida Chemical Company Exclusive Group Limited H-4440
Tiszavasvari, Kabay, Janos 4.29, * In Partnership
with the firm Sun Pharmaceutical Industries. |
DIRECTORS
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Name : |
Mr. Dilip S. Shanghvi |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
46 years |
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Qualification : |
B. Com. |
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Experience : |
23 years |
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Date of Appointment : |
01.04.1993 |
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Previous Employment : |
Sun Pharmaceutical Industries – Partner |
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Name : |
Mr. Sudhir V. Valia |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
44 years |
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Qualification : |
FCA |
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Experience : |
22 years |
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Date of Appointment : |
01.04.1994 |
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Previous Employment : |
Practising Chartered Accountant |
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Name : |
Mr. Sailesh T. Desai |
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Designation : |
Whole Time Director |
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Name : |
Mr. S. Mohanchand Dadha |
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Designation : |
Director |
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Name : |
Mr. Hasmukh S. Shah |
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Designation : |
Director |
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Name : |
Mr. Ashwin Dani |
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Designation : |
Director |
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Name : |
Mr. Kemi M. Mistry |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. Kamlesh H.
Shah |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 30.09.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group
(2) |
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Indian |
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Individuals /
Hindu Undivided Family |
30531532 |
14.74 |
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Bodies Corporate |
101302400 |
48.91 |
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Any other –
Trusts |
128020 |
0.06 |
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Sub Total (A) (1) |
131961952 |
63.71 |
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(B) Public Shareholding (3) |
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Institutions |
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Mutual Funds
/Axis |
7514514 |
3.63 |
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Financial
Institutions / Banks |
1899506 |
0.92 |
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Insurance
Companies |
400066 |
0.19 |
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Foreign
Institutional Investors |
42511188 |
20.53 |
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Sub Total (B) (1) |
52325.274 |
25.27 |
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2. Non – Institutions |
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Bodies Corporate |
9266757 |
4.47 |
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Individual
shareholders holding nominal share capital up to Rs. 0.100 million |
8155367 |
3.94 |
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Individual shareholders
holding nominal and share capital in excess of Rs. 0.100 million |
3825956 |
1.85 |
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(C) Any Other |
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NRI |
113663 |
0.05 |
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NRN |
75747 |
0.04 |
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Overseas
Corporate Bodies |
10 |
0.00 |
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Clearing Members |
126622 |
0.06 |
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Trust |
2974 |
0.00 |
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Foreign Company |
1262069 |
0.61 |
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Sub Total (B) (2) |
22829165 |
11.02 |
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Total |
207116391 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Tablets,
Capsules, Parenterals, Ointments, Bulk Drugs, Chemicals and Liquids. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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PRODUCTION STATUS (31.03.2008)
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Particulars |
Installed
Capacity |
Actual
Production |
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Tablets/ Capsules/ Parenterals / Ointments |
6506.7 No. in Millions |
1540.8 No. in Millions |
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Bulk Drugs/ Chemicals |
1027.8 [In Kilo Litres] |
2161.5 [In ’00 Kgs] |
GENERAL INFORMATION
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No. of Employees : |
8000 |
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Bankers : |
v
Bank
of Nitin Niwas, 47, v
State
Bank of v
Standard
Chartered Grindlays Bank Limited v
ICICI
Bank Limited v
Bank
of v
Citibank
N. A. v
Kotak
Mahindra Bank Limited |
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Facilities : |
* Includes repayable within one year Rs. Nil (Precious Year 907.900 millions. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered
Accountants, |
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Address : |
Mumbai, |
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Memberships : |
Confederation of
Indian Industry |
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Subsidiaries : |
v
Sun
Pharma Advance Research Company Limited v
Sun
Pharma Global Inc., v
Milmet
Pharma Limited [Up to 25.10.2005] v
Sun
Pharmaceutical ( v
Zao
Sun Pharma Industries Limited, v
Caraco
Pharmaceuticals Laboratories Limited, v
Sun
Pharma De Mexico S.A. DE C.V. v
Sun v
Sun
Pharmaceutical Industries Inc v
v
v
Sun
Pharmaceuticals UK Limited v
ICN
Hungary Limited v
Universal
Enterprise Private Limited v
Sun
Pharmaceutical v
SPIL
De Mexico S.A. DE C.V. v
ALKALOIDA
Chemical Company exclusive group Limited (Formerly ICN Hungary Limited) |
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Associates : |
v
Sun
Pharma Exports v
Sun
Pharmaceuticals Industries |
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Joint Venture
: |
Sun Pharma House No. 4, Road
No. 16-A, Near Gulshan Post Office, Gulshan – 1, |
CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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295000000 |
Equity shares |
Rs. 5/- each |
Rs. 1475.000 Millions |
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25000000 |
Preference shares |
Rs. 1/- each |
Rs. 25.000 millions |
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Total |
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Rs. 1500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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207116391 |
Equity shares |
Rs. 5/- each |
Rs. 1035.600 Millions |
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NOTE:
Of the above:-
1) 161630010 Equity Shares were allotted as fully paid Bonus Shares by
capitalisation of Securities Premium Account, Profit and Loss Account, Amalgamation
Reserve and Capital Redemption Reserve Account.
2) 413633; 208000; 477581; 11438; 18519 and 19771 Equity Shares of Rs.10
and 4274 Equity Shares of Rs. 5 each fully paid, were allotted to the
shareholders of erstwhile Tamilnadu Dadha Pharmaceuticals Limited, Milmet
Laboratories Private Limited, Gujarat Lyka Organics Limited, Sun Pharmaceutical
Exports Limited, Pradeep Drug Company Limited, M.J. Pharmaceuticals Limited and
Phlox Pharmaceuticals Limited respectively, pursuant to Schemes of Amalgamations,
without payment being received in cash.
3) 6% Cumulative Redeemable Preference Shares of Re.1 each are
redeemable at par at any time at the option of the Shareholder. 187177232 6%
Cumulative Redeemable Preference Shares of Re.1 each were allotted as fully
paid bonus shares, to the equity shareholders, by capitalisation of Capital
Redemption Reserve. During the year 137400304 Preference Shares were redeemed
at par.
4) 21600761 Equity Shares of Rs. 5 each were allotted to the holders of
Zero Coupon Foreign Currency Convertible Bond on exercise of conversion option.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1035.600 |
980.700 |
942.700 |
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2] Share Capital Suspense |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
41040.600 |
23514.200 |
13.706.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
42076.200 |
24494.900 |
14649.400 |
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LOAN FUNDS |
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1] Secured Loans |
228.800 |
203.900 |
183.900 |
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2] Unsecured Loans |
796.400 |
10477.60 |
17275.900 |
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TOTAL BORROWING |
1025.200 |
10681.500 |
17459.800 |
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DEFERRED TAX LIABILITIES |
1129.400 |
1093.200 |
1044.400 |
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TOTAL |
44230.800 |
36269.600 |
33153.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
6300.400 |
5892.900 |
5361.900 |
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Capital work-in-progress |
334.300 |
319.100 |
308.000 |
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INVESTMENT |
18435.700 |
10574.900 |
7796.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3896.300
|
3333.800
|
2634.100
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Sundry Debtors |
10554.400
|
3100.000
|
2564.700
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Cash & Bank Balances |
10724.200
|
12026.800
|
12309.800
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Other Current Assets |
257.800
|
327.000
|
304.600 |
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Loans & Advances |
3618.700
|
3086.800
|
4761.100 |
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Total
Current Assets |
29051.400
|
21874.400
|
22574.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7263.100
|
2314.700
|
1661.800
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Provisions |
2627.900
|
77.000
|
1225.000
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Total
Current Liabilities |
9891.000
|
2391.700
|
2886.800 |
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Net Current Assets |
19160.400
|
19482.700
|
19687.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
44230.800 |
36269.600 |
33153.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
23656.400 |
16625.600 |
12916.400 |
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Other Operating Income |
7834.100 |
5806.200 |
3887.000 |
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Other Income |
1276.200 |
1608.400 |
1266.100 |
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Total Income |
32766.700 |
24040.200 |
18069.500 |
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Profit/(Loss) Before Tax |
10522.000 |
6405.400 |
4886.800 |
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Provision for Taxation |
381.600 |
116.100 |
273.900 |
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Profit/(Loss) After Tax |
10140.400 |
6289.300 |
4612.900 |
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Earnings in Foreign Currency : |
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FOB Export Earnings |
8064.500 |
4805.600 |
3652.100 |
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Total Earnings |
8064.500 |
4805.600 |
3652.100 |
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Imports : |
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Raw Materials |
2329.300 |
2025.700 |
1609.300 |
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Stores & Spares |
135.100 |
93.300 |
98.700 |
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Capital Goods |
194.400 |
590.000 |
296.100 |
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Others |
22.000 |
83.000 |
82.400 |
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Total Imports |
2680.800 |
2792.000 |
2086.500 |
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Expenditures : |
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Cost of Goods Sold |
15267.400 |
11579.800 |
8319.000 |
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Indirect Taxes |
648.700 |
516.300 |
413.900 |
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Personnel Cost |
1202.000 |
988.700 |
820.100 |
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Operating Expenses |
3255.100 |
2551.100 |
2088.100 |
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Research and Development Expenditure |
1310.400 |
1536.200 |
1134.400 |
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Depreciation & Amortization |
561.100 |
462.700 |
407.300 |
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Total Expenditure |
22244.700 |
17634.800 |
13182.700 |
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QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2008 |
|
Type |
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|
1st
Quarter |
|
Sales Turnover |
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|
8999.800 |
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Other Income |
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|
321.700 |
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Total Income |
|
|
9321.500 |
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Total Expenditure |
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|
6300.400 |
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Operating Profit |
|
|
3021.100 |
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Interest |
|
|
0.000 |
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Gross Profit |
|
|
3021.100 |
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Depreciation |
|
|
142.800 |
|
Tax |
|
|
70.500 |
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Reported PAT |
|
|
2807.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.18
|
0.72
|
1.39 |
|
Long Term Debt Equity Ratio |
0.18
|
0.72
|
1.37 |
|
Current Ratio |
3.04
|
5.95
|
5.46 |
|
TURNOVER RATIOS |
|
|
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|
Fixed Assets |
3.62
|
2.91
|
2.57 |
|
Inventory |
8.88
|
7.72
|
7.74 |
|
Debtors |
3.96
|
8.13
|
7.09 |
|
Interest Cover Ratio |
208.94
|
73.79
|
44.52 |
|
Operating Profit Margin(%) |
34.68
|
30.21
|
31.04 |
|
Profit Before Interest and Tax Margin(%) |
32.93
|
28.20
|
28.70 |
|
Cash Profit Margin(%) |
33.33
|
29.32
|
28.82 |
|
Adjusted Net Profit Margin(%) |
31.58
|
27.31
|
26.48 |
|
Return On Capital Employed(%) |
27.01
|
19.30
|
16.31 |
|
Return On Net Worth(%) |
30.47
|
32.15
|
35.93 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject came into existence as a startup with just 5 products in the year 1993. Company is an international speciality Pharmaceuticals Company, with a presence in 30 markets. The Company also makes Active Pharmaceutical Ingredients (API). In branded markets, Company products are prescribed in chronic therapy areas like Cardiology, Psychiatry, Neurology, Gastroenterology, Diabetology and Respiratory. It makes speciality formulations across a range of dosage forms- oral, injectable and delivery system based. Also API, speciality APIs including peptides, steroids, hormones and anticancers at internationally approved world-class sites.
Sun Pharma Advanced Research Center (SPARC), the first research center of the
company was inaugurated during the year 1993. The Company's first API
manufacturing plant was built in Panoli during the year 1995, for access to
high quality actives ahead of competition, and to tap the vast international
opportunity for speciality APIs. Another API plant, Ahmednagar plant, was
acquired from the multinational Knoll Pharmaceuticals in the year 1996, and
upgraded with substantial capacity addition over the years. By the year 1997,
Company’s headquarters were shifted to Mumbai, the commercial capital of the
country.
Subject began the first international acquisitions during the year 1997. As
part of a technology-for-equity agreement, a stake was acquired in a generic
dosage form manufacturer, the Detroit-based Caraco Pharm Labs. An equity stake
was taken in MJ Pharma, a manufacturer of several dosage form lines with UK
MHRA approval for Cephalexin capsules. TDPL, a company with an extensive
product offering (oncology, fertility, anesthesiology, pain management) was
also merged with Sun Pharma in the same year 1997. In the year 1998, a basket
of brands, which include several in the respiratory/asthma area, are acquired
from Natco Pharma and the new formulation plant at Silvassa was commenced its
operations. Milmet Labs was merged with Sun Pharma during the year 1999. The
Cephalexin API manufacturer Gujarat Lyka Organics also merged with the company
in the same period. Pradeep Drug Company, a Chennai based API manufacturer was
merged with the company in the year 2000.
In the year 2001, a new formulation plant was built in Dadra; spread over a
5-acre site with built up area of 120,000-sq. ft. The erstwhile TDPL division
was renamed to Spectra and a new division, Arian, targeting
cardiologists/physicians and diabetologists was launched during the same year
2001. Sun Pharmaceutical (
The Company bought a plant in
Company purchased 3,712,557 shares in February of the year 2008, equivalent to
an additional 9.4% stake in Taro Pharmaceutical Industries Ltd (TAROF, Pink
Sheets). These shares bought by Compnay indirect subsidiary, Alkaloida Chemical
Company Exclusive Group Limited, from Brandes Investment Partners, L.P
increases Sun Pharma and its subsidiaries stake in Taro Pharma to 34.4%. In
March of the year 2008, the company has commercially launched generic
Amifostine for injection 500mg, which is therapeutically equivalent to
MedImmune's Ethyo.
MILE STONE
1983
The company starts
operations with 5 psychiatry-based products. A team of 2 people quickly grows
to 10 employees. Year 1 turnover- Rs. 1.000 million. Initial coverage is limited
to Kolkata. Within a year the company expands to cover all eastern states. A
small manufacturing facility for tablets/capsules is set up in a shed at Vapi.
(This plant subsequently is expanded/upgraded in every year that follows.)
1986
Administrative
office is set up in
1987
Marketing
operations are expanded nation-wide.
1988
Monotrate, Angizem,
the initial products in cardiology are launched. The company is reported in a
market audit by the prescription tracking company, ORG* for the first time-
rank 107th, 0.1% Market share.
1989
The corporate
office is shifted to
1991
At SPARC, (the proposed research center) - construction groundwork is
started. Turnover Rs. 97.400 millions, Rank 70th.
1993
SPARC is inaugurated.
1994
After an IPO in October, the company is listed on stock exchanges in
1995
A division, Aztec, is begun for cardiology products. A reallocation of
products across divisions also takes place. Inca, a new division to market
critical care medication to intensive care units commences operations.
International marketing is strengthened with offices in
1996
A bulk drug units at Ahmednagar is acquired from Knoll Pharma. A stake is
acquired in a generic dosage form manufacturer; the
1997
TDPL, a company with a diverse product offering (oncology, fertility,
anesthesiology, pain management) is merged with Sun Pharma. This brings a ready
entry into new therapy areas that offer growth opportunity. Marketing is
reorganized into 6 speciality-focused divisions. A research and development
facility, the company's second, is established. This center will make dosage
forms and supporting documentation for the generic markets in North America and
1998
A basket of brands
is acquired from Natco Pharma, some of the products use a time release
technology. For a quick entry in the area of ophthalmology, Milmet Labs, a
company with interesting products in this area, is merged into Sun Pharma. The
company's new formulation plant at Silvas commences operations.
1999
Rank moves within
the top 10 in the domestic market. The bulk cephalexin manufacturer Gujarat
Lyka Organics is merged with Sun Pharma.6 brands now feature among the leading
300 pharma brands in
2000
Ranked 5th among all companies in the domestic market . Pradeep Drug
company, a Chennai based bulk active manufacturer is merged with Sun Pharma.
The company announces a dedicated research campus for NCE initiatives with
investments of Rs. 40cr over two years.
FUTURE PLANS
A state of the art bioequivalence facility with a functional
capacity of 149 beds, fourteen high capacity LCMS, fully computerised blood
chemistry labs capable of comprehensive analysis have been in place for a year,
and the same is being expanded to more than 200 beds. Coming up with a well
equipped, Phase 1 Clinical unit and ECG Core Laboratory for clinical studies
and safety studies by mid 2008.
MANAGEMENT DISCUSSION AND
ANALYSIS:
INDIAN MARKET
The Indian prescription market is Rs.324 bill; with a 15% growth rate at stockist level, based on market data for companies with a national presence (IMS ORG Stockist Audit MAT April 08).
Prosperity, lifestyle changes, upward mobility continued to
be themes for
A continuing area of concern that affected pharma companies this year as well, was the pricing policy and the numerous price changes brought about by the price monitoring body, the NPPA. Excise was reduced as a part of the budget proposals. To recapthe previous drug price policy is based on essentiality and covered 74 molecules used as antibiotics, painkillers or were used in national health care programs such as tuberculosis eradication or blindness prevention. The government has to walk a thin line between affordable costs and availability, given the lack of infrastructure for healthcare delivery in the country, where only a small fraction of the population has access to modern healthcare, particularly in rural areas and smaller towns; healthcare insurance is as yet, minimal, and current polices do not cover ailments that are treated with outpatient visits such as hypertension or diabetes (and are generally limited to post surgery or hospitalization care), and the patient pays for most healthcare.
Changes in the healthcare policy now require drugs used in the treatment of chronic or lifestyle areas to be added to the list as well. This change would increase the span of medicines control to 350. This move, in a nation where medicine prices are amongst the lowest worldwide, may lead to lower growth in the pharma sector and at the end of the day may not possibly be in the best interests of the consumer. After concerns raised by the various industry associations, the draft policy is being examined by one of the highest bodies in the country, the Group of Ministers. The time horizon and the final form that this authoritative policy reaches the patient in, is open to conjecture.
Chronic therapy areas continued to appear attractive to companies across the spectrum, as they entered the area, created additional marketing divisions and introduced new products. The first of biotech-based or technically-difficult products from multinationals reached market shortly after international launch. Small regional companies continued their effort to create a foothold in larger cities. Some large companies began to expand their field force for rural markets, more seriously than they did before.
Patent challenges continued this year as well, testing the boundaries of what is patentable in the country despite the Indian Patent law leaving little room for incremental innovation to get protection. Since 2005, a new Patent Act has been in place in the country offering international levels of intellectual property protection, but with safeguards to protect patient interest. Yet cases continued to be tried & products filed in the judicial system that would test the patentability.
As yet, the products that have reached market are therapeutic analogues or products where current treatments are available or high value biotech based products that address a limited market, such as specific kinds of cancer. They are open to licensing these kinds of products should they feel they require to.
The market continued to be
extremely competitive, with new entrants in these therapy areas, additional
divisions from companies that already have a presence, and forays into urban
markets by companies that have a regional presence. Companies have been making
disproportionate investments in marketing to establish relationships with
doctors. Several companies have begun to in-license molecules that are
difficult-to-make, in order to establish a pro-technology image.
They hold no. 1 rank with 6
specialities, which is the same position as last year, and they gained market
share in psychiatry, neurology, cardiology, diabetology, ophthalmologyand
orthopedics.
Gradual ranks increases also
continue to be seen in areas like gynecology, urology, nephrology which are
chronic therapy areas in which they are gradually building up market share.
They continued to invest in
activities that project the company as a knowledge provider. Across divisions,
they used opportunities to align with internationally reputed universities or
acclaimed bodies to create interactive learning situations, workshops and
update sessions for specialist consultants across the country.
Seminars to share the latest advances in therapy were also arranged. Interdisciplinary lectures, to help specialists in one therapy recognize and treat presenting symptoms related to a different speciality area, were also widely appreciated. For instance, movement disorder clinics for the clinical practitioner, updates for gynecologists in detecting cancer of the cervix and breast etc.
In Oncology, which is an intensely competitive area which has over 60 companies competing, their emphasis has been on knowledge sharing, for instance with knowledge updates on the latest advances for post graduate students.
For psychiatry and neurology, in addition to these initiatives and international lectures, camps for diagnosis and treatment of epilepsy, bipolar mood disorders, parkinsons’ disease, etc. have also helped build mindshare with doctors.
Educational and knowledge sharing programs with bodies like American Diabetic Association and American College of Cardiology have helped reach out to top notch specialists. Workshops for practicing doctors as well as post graduate students, using discussions and tests with actual case histories have reinforced the image they have built over the years.
At the end of the day, strong execution bytheir field force continues to be the most important part of their strategy, and one that sets apart from their competitors. An enthusiastic team that executes strategies and a strong product team that looks for ideas that have a clear practical bent, are two complementary sides that ensure that their initiatives convert into sales in a highly competitive market.
API
Markets
The world market for APIs is estimated to be $46 bill by
2010, with higher growths forecast for
API sales of Indian companies are geared to highly regulated
markets such as the
According to a Frost & Sullivan report. API market in
At Sun Pharma, 10% of current turnover is from API sales to
external customers and this does not take into account the API they use
in-house. They are able to compete with speed to market & sensible costs
not only in the
API
Manufacturing:
The expertise in API manufacturing enables to work with
innovative companies as a sourcing partner & benefit from the advantages of
integration with a tight handle on cost & delivery.
The API filings strengthen their presence worldwide &
specially in the
The Panoli API plant which they commissioned in 1995 &
expanded several times over the course of the last decade, they doubled their
plant size with an expansion. The new site houses plants for anticancer and
steroid API manufacture, a large warehouse, utility block, tank farm &
solvent storage. Plant 6 is large multiproduct API facility for regulated
markets such as the
At Ahmednagar, an oncology plant over four floors with 18
reactors and 8.21 kilolitre capacity with separate air handling systems and restricted
material movement was commissioned. They expect to scale up complex anticancers
such as oxaliplatin, capcetabine, gemicitabine at this plant, which has been
built to USFDA specifications.
The Karkhadi plant, a plant to manufacture formulations has
been made operational and the area for non-sterile formulations such as liquids
& tablets has since received USFDA approval for cefuroxime axetil. They
expect their API business to continue to feed their dosage form business, and
strengthen their ability to compete internationally.
Formulation
manufacturing:
They have a solid manufacturing base now across continents,
with international grade, approved or approvable plants that can handle a range
of dosage forms in
Halol has witnessed increase in area from 14,000 sq. mt. as
recently as 2004, to 29,500 sq. mt. now. The Halol plant holds USFDA approval
for tablets, capsules, injectables & nasal sprays, and in the course of the
past year they received several injectable ANDA approvals out of this site. A
separate solid dosage form area for anticancer tablets & capsules, equipped
with totally different air handling units, was commissioned; this area meets
international regulatory standards. The area for injectable oncologicals was
expanded and the lyophilization capacity was enhanced with two large
lyophilizers installed.
A team from the UKMHRA inspected the plant including the
injectable area, and they passed this audit with flying colors as no
observations were received even for complex injectables. Manufacturing area to
handle the production of non-sterile formulations was increased from 3300 sq.
mt. to 10,000 sq. mt. in order to support increased production. QC area was expanded
almost three times and a state of the art warehouse built. These areas will
support their plans for the
At their Silvassa formulations plant a pellet manufacturing
area spread over 4800 sq. ft. and supporting QC was built. This will enable to
compete for important products such as Pantocid, Panlipase, Duloxetin. At the
close of the year their Dadra plant also received approval from the US FDA.
Caraco:
To cater to
Sun Pharma Inc.'s
Cranbury:
With its 80 person strong staff the site continues to
develop & file products including those containing controlled substances.
In addition to nimodipine, approvals for hydroxyzine and benzonatate were
received from this plant.
OTHER INFORMATION:-
|
CONTINGENT LIABILITIES NOT PROVIDED FOR |
31.03.2008 (Rs. In millions) |
|
Guarantees Given by the bankers on behalf of the Company |
68.300 |
|
Corporate Guarantees |
101.700 |
|
Letters of Credit for Imports |
158.600 |
|
Liabilities Disputed - Appeals filed with respect to : |
|
|
Sales Tax |
29.400 |
|
Excise Duty |
198.700 |
|
Income Tax |
147.000 |
|
ESIC Contribution |
0.300 |
|
Drug Price
Equalisation Account [DPEA] on account of demand towards unintended benefit,
including interest there on, enjoyed by the Company |
14.000 |
|
Demand by JDGFT import
duty with respect to import alleged to be in excess of entitlement as per the
Advanced Licence Scheme |
10.300 |
|
Claims against the
Company not acknowledged as debts |
3.200 |
|
|
|
|
2. Estimated amount of contracts remaining to be executed on capital account [ net of advances ]. |
216.500 |
TRADE REFERENCES:
v
Sun
Petrochemical Private Limited
v
Sun
Speciality Chemicals Private Limited
v
Navjivan
Rasayan (
FIXED ASSETS
v
v
v
Buildings
v
Plant
and Machinery
v
Vehicles
v
Furniture
and Fixtures
WEBSITE DETAILS
Company Profile
They are an international speciality pharma company, with a presence in 30 markets. They also make active pharmaceutical ingredients. In branded markets, the products are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and respiratory.
They have the same drive for growth that marked the early
days. Subject came into existence as a startup with just 5 products in 1983. In
the time since, they have crossed several milestones to emerge as an important
speciality pharma company with technically complex products in global markets,
and a leading
pharma company in
In
In the post-1996 years, they have used a combination of internal growth and acquisitions to drive growth; important mergers were those of the US, Detroit based Caraco Pharm Labs, ICN Hungary (now called Alkaloida Chemical Company Exclusive Group), and that of the internationally approved plants at Halol, India as well as Bryan, Ohio, US and Cranbury, NJ, US.
They have shifted work related to new molecules and drug delivery systems to a company, SPARC, which is listed on the Indian stock exchange.
Group
Companies
Caraco Pharmaceutical Laboratories
Based in
Caraco's manufacturing facility and executive offices were
constructed in 1991, after a $9.1 million loan from the Economic Development
Corporation of the city of
The company's investment in and support of Caraco has
resulted in, since the second quarter of 2002, Caraco achieving the sales to
support its operations. As of March 2007, Sun Pharma owns approx 75% on a
diluted basis of the outstanding common shares of Caraco. Subject has two R and
D centers in
Sun Pharmaceutical
Industries Inc. (SPI)
Sun Pharmaceutical Industries Inc is a Michigan Corporation
and a wholly owned subsidiary of Sun Pharmaceutical Industries Limited,
In the second half of 2004, Sun Pharma acquired the
trademarks, manufacturing know-how and other intellectual property of certain
pharmaceutical products from Women's First Healthcare, Inc, which was under
bankruptcy proceedings. On completion of the acquisition in December 2004,
these products were assigned to Sun Pharma Inc.
In December 2005, Sun Pharma Inc completed the purchase of
dosage form manufacturing operations of Able Labs in the
The
In January 2005, the company entered into a distribution and
sale agreement with Caraco. Under the agreement, Caraco distributes and sells
SPI’s products using its business organization, management personnel, and
distribution set up.
Sun Pharmaceutical
(
Sun Pharmaceutical (
Alkaloida Chemical
Company Exclusive Group Limited.
ICN Hungary, purchased from Valeant Pharmaceuticals in 2005,
is one of the few units worldwide, authorized to make controlled substances. ICN
Hungary has now been renamed Alkaloida Chemical Company. This 170 acre site has
facilities spread over 1,75,000 sq ft for the manufacture of bulk actives, with
500 KL capacity and designated areas to make controlled substances. It has a
150,000 sq ft facility for different dosage forms such as film coated and
effervescent tablets, capsules, etc. A large 65,000 sq ft research center has
labs across synthetic chemistry, instrumentation analytical and structural
elucidation. The site is operational with 450 people and additional
recruitments are planned over time.
Acquisitions
They, along with the subsidiaries, recently signed
definitive agreements to acquire Taro Pharmaceutical Industries Limited.,
(TAROF, Pink Sheets), a multinational generic manufacturer with established
subsidiaries, manufacturing and products across the
This is a USD 454 million acquisition. Taro has a strong
franchise in dermatology and topical products, in addition to product baskets
in cardiovascular, neuropsychiatric and anti-inflammatory therapeutic
categories. Taro
PRESS RELEASES:-
Sun Pharmaceutical Extends Tender Offer for Taro
Mumbai,
India: October 3, 2008: Sun Pharmaceutical Industries Limited
(Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUN PHARMA, BSE: 524715) today
announced its subsidiary, Alkaloida Chemical Company Exclusive Group Ltd.
(Alkaloida), has extended the Expiration Date of the Tender Offer for the
purchase of all outstanding Ordinary Shares of Taro Pharmaceutical Industries
Limited (Taro). The Offer will now expire at 5:00 p.m.,
The Supreme Court is scheduled to hear oral arguments on the
appeal on December 8, 2008. If the temporary order remains in effect on
November 7, 2008, Sun will further extend the Offer while the temporary order
remains outstanding.
The Offer was commenced on June 30, 2008 in order to comply
with the terms of the Option Agreement between Alkaloida and the controlling
shareholders of Taro. Alkaloida exercised its options to acquire shares of Taro
from the controlling shareholders on June 25, 2008. The Option Agreement
required Alkaloida, promptly after exercising the options, to commence a tender
offer at USD 7.75 per Ordinary Share of Taro held by other shareholders. The
Offer had previously been scheduled to expire at 5:00 p.m.,
The complete terms and conditions of the Tender Offer are
set out in the Offer to Purchase, which is filed with the U.S. Securities and
Exchange Commission. Taro shareholders may obtain copies of all of the offering
documents, including the Offer to Purchase, free of charge at the SEC's website
(www.sec.gov) or by directing a request to MacKenzie Partners, Inc., the
Information Agent for the offer, at
Email: tenderoffer@mackenziepartners.com.
Greenhill & Company, LLC is acting as the Dealer Manager
for the Tender Offer and MacKenzie is acting as the Information Agent for the
Tender Offer.
About Sun Pharmaceutical Industries Limited
Established in 1983, listed since 1994 and headquartered in
India, Sun Pharmaceutical Industries Limited (Reuters: SUN.BO, Bloomberg: SUNP
IN, NSE: SUNPHARMA, BSE: 524715) is an international, integrated, speciality pharmaceutical
company. It manufactures and markets a large basket of pharmaceutical
formulations as branded generics as well as generics in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 49.95 |
|
|
1 |
Rs. 79.56 |
|
Euro |
1 |
Rs. 63.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|