1. Summary Information
|
|
|
Country |
|
|
Company Name |
SUN PHARMACEUTICAL INDUSTRIES LIMITED |
Principal Name 1 |
Mr. Dilip S. Shanghvi |
|
Status |
Good |
Principal Name 2 |
Mr. Sudhir V. Valia |
|
|
|
Registration # |
04-19050 |
|
Street Address |
Sun Pharma
Advance Research Centre (SPARC), Tandalja,
Akota Road, Vadodara – 390020, Gujarat |
||
|
Established Date |
01.03.1993 |
SIC Code |
-- |
|
Telephone# |
91-265-2340001 /
282111822 / 1842 / 1917 / 1951 / 195 / 5515500 / 600 / 700 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-265-2339103 /
28212010 / 2354897/ 2332664 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Tablets |
|
|
# of employees |
Not Available |
Product Name 2 |
Capsules |
|
Paid up capital |
Rs.1,035,600,000/- |
Product Name 3 |
Ointments |
|
Shareholders |
Promoter and Promoter Group (63.72)
Public shareholding (36.28) |
Banking |
Bank of Baroda |
|
Public Limited Corp. |
YES |
Business Period |
19 Years |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
A (69) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
-- |
Caraco Pharmaceutical Laboratories Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
23,644,700,000 |
Current Liabilities |
3,139,300,000 |
|
Inventories |
6,182,600,000 |
Long-term Liabilities |
505,300,000 |
|
Fixed Assets |
7,943,900,000 |
Other Liabilities |
5,616,100,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
9,260,700,000 |
|
Invest& other Assets |
38,294,800,000 |
Retained Earnings |
65,769,700,000 |
|
|
|
Net Worth |
66,805,300,000 |
|
Total Assets |
76,066,000,000 |
Total Liab. & Equity |
76,066,000,000 |
|
Total Assets (Previous Year) |
64,685,800,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Total Income |
32,988,700,000 |
Net Profit |
13,838,000,000 |
|
Total Income (Previous yr) |
26,467,200,000 |
Net Profit(Prev.yr) |
8,986,500,000 |
|
Report Date : |
05.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
SUN PHARMACEUTICAL INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
Sun Pharma
Advance Research Centre (SPARC), Tandalja,
Akota Road, Vadodara – 390020, Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
01.03.1993 |
|
|
|
|
Com. Reg. No.: |
04-19050 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1035.600 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24230GJ1993PLC019050 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BRDS02426E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AADCS3124K |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company's Shares are Listed on the Stock Exchanges |
|
|
|
|
Line of Business : |
Manufacturers of Tablets,
Capsules, Parenterals, Ointments, Bulk Drugs, Chemicals and Liquids. |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 267000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office / Research Centre : |
Sun Pharma
Advance Research Centre (SPARC), Tandalja,
|
|
Tel. No.: |
91-265-2340001 / 282111822
/ 1842 / 1917 / 1951 / 195 / 5515500 / 600 / 700 |
|
Fax No.: |
91-265-2339103 /
28212010 / 2354897/ 2332664 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
|
|
Tel. No.: |
91-22-28211822 /
1842 / 1917 / 1951 / 1953 |
|
Fax No.: |
91-22-28212010 |
|
E-Mail : |
|
|
|
|
|
Research
Centre : |
·
F.P 27, Part Survey No. 27, C. S. No. 1050, T.
RS. Village, Tandalja, District Vadodara - 390 020, ·
17-B, Mahal Industrial Estate, Mahakali Caves
Road, Andheri (East), Mumbai - 400059, Maharashtra, India ·
Chemistry
and Discovery Reaserch Israel, 14 Hakitor Street, P.O. Box, 10347 Haifa Boy
26110, Israel |
|
|
|
|
Additional
Collection Centre : |
203, 2nd Floor, Daver House, Dr. D.N. Road, Next to Central Camera, Fort, Mumbai – 400001, Maharashtra, India Tel No.: 91-22-22694127 |
|
|
|
|
Plant 1: |
C1/2710, GIDC, Phase III, Vapi – 396 195, |
|
|
|
|
Plant 2: |
Plot No. 214 and 20, Government Industrial Area, Phase II,
Piparia, Silvassa – 396 230, |
|
|
|
|
Plant 3: |
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|
|
|
|
Plant 4: |
Sun Pharma Industries* 6-9, Export Promotion, Industrial
Park (EPIP), Kartholi, |
|
|
|
|
Plant 5: |
Plot No. 25and 24/2, GIDC, Phase IV, Panoli – 395 116, |
|
|
|
|
Plant 6: |
A-7 and A-8 MIDC Industrial Area, Ahmednagar – 414 111, |
|
|
|
|
Plant 7: |
|
|
|
|
|
Plant 8: |
Plot No. 4708, GIDC, Ankleshwar - 393 002, |
|
|
|
|
Plant 9: |
Plot No. 817/A, Karkhadi, Taluka: Padra, District Vadodara
– 391450, |
|
|
|
|
Plant 10: |
Plot No. 223, Span Industrial Complex, Dadra – 396 191 ( |
|
|
|
|
Plant 11: |
Sun Pharma Industries* Survey No. 259/15, Dadra-396 191 (U.T.Of D.and NH) |
|
|
|
|
Plant 12: |
Sun Pharma Plot No. 754, Nandok Block, Setpipool, Gangtok,
Sikkim-737135, |
|
|
|
|
Plant 13: |
Sun Pharmaceutical Industries Inc, 705 E, Mulberry Street,
Bryan, Ohio-43506, |
|
|
|
|
Plant 14: |
Sun Pharmaceutical Industries Inc, 270, Prospect Plains Road, Cranbury, New Jersey -08512, USA |
|
|
|
|
Plant 15: |
Caraco Pharmaceutical Laboratories Limited |
|
|
|
|
Plant 16: |
Sun Pharmaceutical ( Chandana, Joydevpur, |
|
|
|
|
Plant 17: |
Alkoloida Chemical Company Exclusive Group Limited H-4440 Tiszavasvan, Kabay, Janos 4.29, |
|
|
|
|
Plant 18: |
TKS Farmaceutica Rodovia GO-080, Km 02, Jardim, Pomperia-Goiania/ GO, |
|
|
|
|
Plant 19: |
Sun Pharma De Mexico S.A. de C.V Av. Rio Churubusco No. 658, |
|
|
|
|
Plant 20: |
Chattem Chemicals Inc, 3708 |
|
|
|
|
Overseas Offices: |
Located at: ·
The ·
·
·
·
·
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Dilip S. Shanghvi |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B. Com. |
|
Date of Appointment
: |
01.04.1993 |
|
Previous Employment
: |
Sun Pharmaceutical Industries – Partner |
|
|
|
|
Name : |
Mr. Sudhir V. Valia |
|
Designation : |
Whole Time Director |
|
Qualification : |
FCA |
|
Date of Appointment
: |
01.04.1994 |
|
Previous Employment
: |
Practising Chartered Accountant |
|
|
|
|
Name : |
Mr. Sailesh T. Desai |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. S. Mohanchand Dadha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hasmukh S. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashwin Dani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Keki M. Mistry |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. S. Kalyanasundaram |
|
Designation : |
Chief Executive Officer and Whole Time Director (w.e.f.1st April, 2010) |
KEY EXECUTIVES
|
Name : |
Mr. Kamlesh H.
Shah (Up to 31ST March 2011) |
|
Designation : |
Company Secretary |
|
E mail: |
|
|
|
|
|
Name : |
Mr. Sunil R. Ajmera (Upto
1ST April 2011) |
|
Designation : |
Company Secretary |
|
E mail : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
(1)
Indian |
|
|
|
Individuals / Hindu Undivided Family |
152676100 |
14.74 |
|
Bodies Corporate |
506512000 |
48.91 |
|
Any Others (Specify) |
640100 |
0.06 |
|
Trusts |
640100 |
0.06 |
|
Sub
Total |
659828200 |
63.72 |
|
|
|
|
|
(2) Foreign |
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
659828200 |
63.72 |
|
(B)
Public Shareholding |
|
|
|
(1)
Institutions |
|
|
|
Mutual Funds / UTI |
23486496 |
2.27 |
|
Financial Institutions / Banks |
41386675 |
4.00 |
|
Central Government / State Government(s) |
30100 |
-- |
|
Foreign Institutional Investors |
199773045 |
19.29 |
|
Sub
Total |
264676316 |
25.56 |
|
|
|
|
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
53808281 |
5.20 |
|
Individuals |
|
|
|
Individual shareholders holding nominal share capital up
to Rs. 1 lakh |
38492233 |
3.72 |
|
Individual shareholders holding nominal share capital in
excess of Rs. 1 lakh |
16656566 |
1.61 |
|
Any
Others (Specify) |
2120359 |
0.20 |
|
Non Resident Indians |
702910 |
0.07 |
|
Clearing Members |
337042 |
0.03 |
|
Trusts |
433957 |
0.04 |
|
Foreign Corporate Bodies |
646450 |
0.06 |
|
Sub
Total |
111077439 |
10.73 |
|
|
|
|
|
Total
Public shareholding (B) |
375753755 |
36.28 |
|
|
|
|
|
Total
(A)+(B) |
1035581955 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
Tablets, Capsules, Parenterals, Ointments, Bulk Drugs, Chemicals and Liquids. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Installed
Capacity |
Actual
Production |
|
Tablets/ Capsules/ Parenterals / Ointments |
7157.4 No. in Millions |
1187.7 No. in Millions |
|
Bulk Drugs/ Chemicals |
2085.7 [In Kilo Litres] |
2252.5 [In ’00 Kgs] |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
|
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins
and Sells Chartered
Accountants, |
|
Address : |
Mumbai, |
|
|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
Control Entity: |
|
|
|
|
|
Enterprises under Significant influence of key management personnel or
their relative |
·
Sun Petrochemicals Private Limited ·
Navjivan Rasayan (Gujarat) Private Limited. ·
Sun Parma Advanced Research Company Limited. |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Related Parties : |
·
Taro Pharmaceutical India Private Limited ·
Taro Pharmaceutical Laboratories INC. ·
Taro Pharmaceutical U.S.A., INC. ·
Taro Pharmaceuticals Europe B.V. ·
Taro Pharmaceuticals Ireland Limited ·
Taro Pharmaceuticals North America INC ·
Taro Pharmaceuticals UK Limited ·
Taro Research Institute Limited ·
Tarochem Limited ·
Morley and Company Inc. ·
Sun Laboratories FZE ·
Taro Pharmaceuticals Canada Limited ·
Sun Laboratories Inc. ·
Taro International Limited - UK |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000000 |
Equity Share |
Rs.1/- each |
Rs.1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1035581955 |
Equity Share |
Rs.1/- each |
Rs.1035.600
Millions |
|
|
|
|
|
NOTE:
Of the above :
1) 808,150,050
Equity shares allotted as fully paid Bonus Shares by capitalization of
Securities Premium Account, Profit and Loss Account, Amalgamation Reserve and
Capital Redemption Reserve Account.
2) 4136330,
2080000, 4775810, 114380, 185190, 197710 and 21370 Equity Shares fully paid
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) 108003805
Equity Shares allotted to the holders of Zero Coupon Foreign Currency
Convertible Bond on exercise of conversion option.
4) With effect
from 27th November, 2010, one equity share of 5 each fully paid-up
was split into five equity share of 1 each fully paid-up
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1035.600 |
1035.600 |
1035.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
65769.700 |
56144.200 |
50478.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
66805.300 |
57179.800 |
51514.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
505.300 |
294.900 |
236.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
505.300 |
294.900 |
236.000 |
|
|
DEFERRED TAX LIABILITIES |
1285.100 |
1153.300 |
1174.200 |
|
|
|
|
|
|
|
|
TOTAL |
68595.700 |
58628.000 |
52924.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7943.900 |
7405.200 |
6992.600 |
|
|
Capital work-in-progress |
2280.600 |
921.500 |
759.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
36014.200 |
39516.900 |
26945.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6182.600
|
5701.400
|
4867.400
|
|
|
Sundry Debtors |
5426.200
|
5532.900
|
6800.300
|
|
|
Cash & Bank Balances |
12509.000
|
1872.700
|
12654.700
|
|
|
Other Current Assets |
183.700
|
73.900
|
381.300
|
|
|
Loans & Advances |
5525.800
|
3661.300
|
2674.600
|
|
Total
Current Assets |
29827.300
|
16842.200
|
27378.300
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
33.000
|
1482.500
|
4777.900
|
|
|
Other Current Liabilities |
3106.300
|
1150.500
|
953.000
|
|
|
Provisions |
4331.000
|
3424.800
|
3421.000
|
|
Total
Current Liabilities |
7470.300
|
6057.800
|
9151.900
|
|
|
Net Current Assets |
22357.000
|
10784.400
|
18226.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
68595.700 |
58628.000 |
52924.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19331.200 |
18461.300 |
27697.500 |
|
|
|
Other Operating Income |
11715.800 |
6776.600 |
10918.000 |
|
|
|
Other Income |
1941.700 |
1229.300 |
1821.200 |
|
|
|
TOTAL |
32988.700 |
26467.200 |
40436.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
8969.300 |
8152.900 |
19098.800 |
|
|
|
Indirect Taxes |
0.000 |
382.800 |
817.200 |
|
|
|
Personnel Cost |
2140.600 |
1747.100 |
1483.100 |
|
|
|
Operating Expenses |
5340.400 |
4720.400 |
4205.600 |
|
|
|
Research and Development Expenditure |
1355.900 |
1277.700 |
1289.300 |
|
|
|
TOTAL |
17806.200 |
16280.900 |
29894.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
15182.500 |
10186.300 |
10542.700 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
642.300 |
694.700 |
588.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
14540.200 |
9491.600 |
12954.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
702.200 |
505.100 |
301.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
13838.000 |
8986.500 |
12652.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
18891.500 |
16225.900 |
11287.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Share |
3624.500 |
2847.900 |
2847.900 |
|
|
|
Corporate Dividend Tax |
588.000 |
473.000 |
484.000 |
|
|
|
Proposed Dividend and Dividend
distribution tax written back |
0.000 |
0.000 |
(117.000) |
|
|
|
Transfer to General Reserve |
5000.000 |
3000.000 |
4500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
23517.000 |
18891.500 |
16225.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
9005.600 |
8389.500 |
8137.700 |
|
|
TOTAL EARNINGS |
9005.600 |
8389.500 |
8137.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2976.500 |
3003.900 |
2299.600 |
|
|
|
Packaging Material |
NA |
242.600 |
272.800 |
|
|
|
Capital Goods |
NA |
242.000 |
367.700 |
|
|
|
Stores and Spares |
1.800 |
26.400 |
20.200 |
|
|
TOTAL IMPORTS |
2978.300 |
3514.900 |
2960.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
13.40 |
43.40 |
61.10 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 (1st
Quarter) |
30.09.2011 (2nd
Quarter) |
31.12.2011 (3rd
Quartered) |
|
Net Sales |
8629.600 |
9386.500 |
10118.500 |
|
Total Expenditure |
4755.600 |
5221.100 |
5867.400 |
|
PBIDT (Excl OI) |
3874.000 |
4165.400 |
4251.100 |
|
Other Income |
796.600 |
569.900 |
(351.600) |
|
Operating Profit |
4670.600 |
4735.300 |
3899.500 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
4670.600 |
4735.300 |
3899.500 |
|
Depreciation |
175.900 |
181.300 |
198.500 |
|
Profit Before Tax |
4494.700 |
4554.000 |
3701.000 |
|
Tax |
262.700 |
178.500 |
48.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
4232.000 |
4375.500 |
3652.300 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4232.000 |
4375.500 |
3652.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
41.94 |
33.95
|
31.30
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
75.21 |
51.41
|
46.77
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
38.49 |
39.14
|
37.69
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21 |
0.17
|
0.25
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.11 |
0.11
|
0.18
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05 |
2.78
|
2.99
|
LOCAL AGENCY FURTHER INFORMATION
FINANCE
CRISIL continued to reaffirm its highest rating of "AAA/
Stable" and “P1+”, for the Company’s Banking Facilities throughout the
year enabling the Company to avail facilities from banks at attractive rates.
The Company does not offer any Fixed Deposit scheme.
MANAGEMENT
DISCUSSION AND ANALYSIS
THE GLOBAL PHARMA
MARKET
Although global spending on medicines is expected to grow from US$ 856 billion in 2010 to reach around US$ 1065-1095 billion in 2015, the incremental growth in global medicine spending is expected to slow from the US$251 billion increment registered in 2006-10 to the expected US$ 210-240 billion increment during 2010-15. Patent expiries, increasing generic sales arid budget controls may restrain successive growth in medicines spending globally, especially in developed markets.
Between 2005 and 2015 the share of developed markets (US and EU 5) in global medicine spending is expected to fall, the share of pharmerging countries is expected to rise, and is expected to remain steady for Japan, rest of Europe and Canada. Pharmerging markets will witness the highest growth in the next five years, driven by increased access through healthcare reforms and economic growth.
BRANDED GENERICS VS.
PATENTED DRUGS
Although a large number of branded products lost their patent protection during the year in the US, however, this did not trigger extensive growth in generic drugs (which are low cost therapeutic equivalents of patented or innovative drugs), on account of intense price competition. Pricing continues to be one of the most Important issues in the pharma world, as affordable healthcare remains a priority for governments worldwide. The rising cost of new product development for new molecules on one hand, as well as spiraling healthcare budgets and mounting governmental pressure to reduce drug prices have prompted companies to ramp up their generic branded generic business.
Brands comprised about 2/3rd of the global pharmaceutical spending during the year 2010. As patents expire in developed markets, the share of branded or patented products is expected to decline in the coming years.
It is expected that highest growth in generics spending would come from the US, Canada, UK, and South Korea. Japan may continue with the lowest generic share, despite significant policy incentives to increase generic prescribing and dispensing.
GROVVTH SHIFTING TO
PHARMERGING MARKETS
The 17 ‘pharmerging’ countries are expected to contribute 28% to global market spending by 2015. Pharmerging markets are expected to double their spending on medicines to $285-31 S billion by 2015, compared with $151 billion in 2010.
The Asia Pacific pharmaceutical market, comprising India, China, Malaysia, South Korea and Indonesia, has emerged as one of the fastest growing pharmaceutical markets. High growth, witnessed in emerging markets, has led to a focus shift for large pharma companies from regulated markets 10 emerging markets. It is expected that while growth in regulated markets will slow down, emerging markets would lead industry growth. Emerging markets have traditionally been characterized with one or more of the following:
· Relatively low entry barriers in terms of product registration requirements and intellectual property rights
· Price sensitivity
· Favorable regulatory environment
· Rising disposable incomes
· Likely increase in health insurance schemes
· Low manufacturing costs
·
Competitive local industry presence
CHRONIC THERAPY AREAS
GLOBALLY
During the year, high volume sales were recorded for anti-cancers, antipsychotics, lipid regulators, proton pump inhibitors and antidepressants. A combination of changing lifestyle patterns, better diagnostic tools and increasing awareness and access, are leading to an increase in incidence and treatment sought for chronic diseases like hypertension, congestive heart failure, depression, asthma and diabetes all over the world. Additionally, factors like pollution and environment changes contribute to an increased incidence of asthma.
Growth is expected to continue in generics, as well as in anti-diabetics, ardiovasculars, and anti-hypertensives in 2011. The prevalence of Type II diabetes is expected to i4icrease in pharmerging countries, such as China, India and Brazil, because of a growing population and changing lifestyle conditions, as well as better access and diagnosis.
THE INDIAN
PHARMACEUTICAL MARKET
Globally, the Indian pharmaceutical industry ranks 10th in terms of value and third terms of volume. According to IMS Health, the Indian Pharma market was estimated to be around 512.3 billion in 2010.
BRANDED GENERICS IN
INDIA
India is largely a branded generics market, which makes up nearly 70-80% of the total pharmaceutical market, with a small percentage of unbranded generics being sold here. The country exports branded generics in large volumes, which are expected to grow at a CAGR of 21-23% during 2009-2014.
FORMULATIONS IN INDIA
Formulations are mostly manufactured for therapeutics, such as anti-diabetics, neuro/central nervous system (CNS), cardiovascular, respiratory and anti-infectives, with acute therapy products, such as anti-infectives and painkillers forming the largest share. The domestic formulations market, which stood at around 417 billion in 2009-10, is expected to grow further owing to better access, awareness, affordability, an increasing middle class population, urbanization, increasing efforts by the government to offer rudimentary health insurance, particularly in the rural areas. India exports formulations in large volumes to semi-regulated markets (SRM), such as Africa, Asia, CIS and Latin America.
GLOBAL PHARMA IN
INDIA
The Indian pharmaceutical market is highly fragmented with 300 large and 18,000 mid-sized and small companies. Some of the Indian pharma companies provide contract research and manufacturing services (CRAMS) to global pharma majors, who find it more cost effective to outsource these activities. The last two years has witnessed a sudden expansion surge by multiple global pharma giants in India, like setting up offices and R and D centers, offering patented products at a special India price, building a portfolio of branded generics, and expanding their reach to rural India. The markets, which were intensely competitive to begin with, became even more so with these new and refocused companies becoming serious about their presence in the Indian market.
CHRONIC THERAPY
PRODUCTS IN INDIA
India is one of the fastest growing pharma markets, attributed to rising disposable incomes with increased affordability, gradually growing insurance penetration, greater life expectancy, rural penetration, and a shift in disease profile towards chronic lifestyle illnesses. Specialty and super specialty therapies are expected to continue growing faster than the rest of the market in the coming years. Increasing pressures of urbanisation, lifestyle changes and work stress are responsible for an increase in the incidence of chronic diseases. Cardiovascular diseases are expected to be the largest cause of deaths and disabilities in India by 2020.
HIGHLIGHTS 2010-11
· Successful acquisition of Taro Pharma following three years of litigation and negotiations. Sun Pharma holds an economic stake of 66% and enjoys voting rights of 77% in Taro
· Indian branded generics grew 37% to reach 23,800 millions
· The API segment sales declined 4% to reach 5,212 millions
· The emerging market branded generic business grew 32% to reach 6,444 millions
· international operations grew across 41 markets.
· Received approvals of 18 products from the USFDA, including complex products like Diltiazem HCL ER Capsules, Galantamine HCL ER Capsules and Atomoxetine HCL Capsules.
· Brought exclusive products (Eloxatin and Pantoprazole) to the US market, these products enjoy limited competition.
· During the year, Research and Development expenditures stood at 3,096 million
INDIAN BRANDED
GENERICS
SEGMENT IDENTITY
· Sixth largest branded generics player in India by prescription share
· Ranked 1st based on share of prescriptions in six classes of specialists:
· Psychiatrists, neurologists, cardiologists, ophthalmologists, orthopedics and gastroenterologists.
· Market leader in chronic segments
· Over 50% of our brands feature among the top three brands for the molecule
· Product basket includes 537 formulations
· Marketing therapy-based products through 18 divisions and 2,700 sales representatives to 130,000 specialist doctors
· They specialize in technically complex products and offering a complete therapy basket, enabling us to remain competitive in a challenging market environment
HIGHLIGHTS OF THE
YEAR
· Revenues increased from Rs. 17,412 million in 2009-10 to 23,800 million in 2010-11
· Market share at 4.3% in 2010- 11, according to AWACS
· Launched 38 new products during the year
· strengthened our prescription share
· Their top 10 brands contributed 15% to the domestic revenues
· Their top 50 brands contributed 52% to the domestic revenues
INDIAN BRANDED
GENERICS
They continue with their emphasis on building customer relationships by facilitating academic interaction and continuing medical education. For instance, an epilepsy course was organized countrywide, with international speakers. CMEs and programs to share therapy advances in neurology, ophthalmology and respiratory were also organized. They also conducted over a hundred health camps for disease detection last year.
US GENERICS
TARO IDENTITY
· Strong presence in dermatology where Taro is working actively to regain its leadership amidst heightened competition
· Major thrust on introducing globally accepted products, penetrating new markets, and strengthening the research and development pipeline
· The production facility at Canada is approved by the Ministry of Health and USFDA
· Delivering to high expectation remains the key challenge.
CARACO IDENTITY
· Production facility continued to be non-operational; however, efforts were on to accelerate compliance and meet FDA requirements; active involvement of
· consultants underway to achieve this
· Overall sales of distributed products has been good during the year
· Caraco to benefit from an increased focus on generics in the US, post its
· resolution of FDA issues and restarting of manufacturing operations.
HIGHLIGHTS OF THE
YEAR
· Grew revenues 104% from 11,069 million in 2009-10 toe.
· 22537.9 million in 2010-11
· Launched 18 new products during the year
· Filed 25 ANDAS and received approvals on 18 ANDAS during the year
· This takes the total to 377 ANDA filed and 225 ANDA received, in all, across companies.
INTERNATIONAL BRANDED
GENERICS
PRESENCE
· Present in 41 pharmaceutical markets across four continents
· High potential markets are Russia, China, Brazil, Mexico, ex-CIS nations and South Africa
· Future plan to selectively build a presence with difficult or technically differentiated generics, such as injections, in certain European markets.
· Continue to bring differentiated branded generics to the rest of the world markets
HIGHLIGHTS OF THE
YEAR
· Received registration for our drugs in the Philippines, Taiwan, Hong Kong and Australia
· At the close of the year, entered into an agreement with Merck to create a joint venture to market branded generics with a delivery system advantage, which would use their product development capability and their regulatory/market strength. The first of these products is at least three years from market. The. joint venture does not include current registrations by either company.
OUTLOOK
Global pharma market is expected to grow by 5-7% to reach US$ 880 billion in 2011 Global pharma market to reach US$ 1.1 trillion by 2014 US pharma market will reach anywhere between US$ 320 and 350 billion by 2015 European markets to reach up to US$ 160 billion by 2015
· Global generic drug spending is estimated to be US$ 234 billion.
· The US pharmaceutical market stood at US$310.6 billion. European markets of Germany, France, Italy, Spain and UK reached US$ 147.4 billion.
· The global Pharma market has registered 4.1% growth to reach US$856 billion.
· The Indian Pharma market stood at US$ 12.3 billion.
FIXED ASSETS:
WEB DETAILS:
BUSINESS DESCRIPTION
Subject is an international specialty pharma company. The
Company manufactures and markets pharmaceutical formulations as branded generics,
as well as generics in India, the United states and several other markets
across the world. The Company’s business is divided into four segments: Indian
Branded Generics, US Generics, International Branded Generics (ROW) and Active
Pharmaceutical Ingredients (API). Its brands are prescribed in chronic therapy
areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and
respiratory. It makes specialty APIs, including peptides, steroids, hormones
and anticancers. APIs and Dosage forms are made at 20 plants across India,
Israel, the United States, Canada, Hungary, Brazil, Mexico and Bangladesh. It’s
API products include Acamprosate Calcium, Alendronate Sodium, Amifostine
trihydrate, Budensonide and Carvedilol. In September 2010, it acquired Taro
Pharmaceutical Industries Limited For the three months ended 30 June 2011, Sun
Pharmaceutical Industries Limited's revenues increased 20% to RS17.01B. Net
income decreased 13% to RS55.01B. Revenues reflect an increase in income from
operations. Net income was offset by decreased net interest income and decline
operating margin. Subject is an international specialty pharmaceutical company.
MANAGEMENT
Dilip S. Shanghvi -
Executive Chairman of the Board, Managing Director – Chairman
Shri. Dilip S. Shanghvi is Executive Chairman of the Board and Managing Director of Sun Pharmaceuticals Industries Limited He is a graduate from Calcutta University and has launched Sun Pharma in 1982 and carries industrial experience in the Pharmaceutical industry and at present he is the Chairman and Managing Director of the Company. He is a Director on the Board of following companies: Caraco Pharmaceutical Laboratories Limited, Detroit, USA, Sun Specialty Chemicals Private Limited, Sun Resins and Polymers Private Limited, Sun Fastfin Services Private Limited, Sun Petrochemicals Private Limited, SPARC Bio-Research Private Limited, Sun Pharma Global Inc., British Virgin Island, Sun Pharma De Mexico SA DE CV, SPIL De Mexico SA DE CV and Shantilal Shanghvi Foundation.
S. Mohanchand Dadha -
Non-Executive Independent Director - Director/Board Member
Shri. S. Mohanchand Dadha is Non-Executive Independent Director of Sun Pharmaceuticals Industries Limited He is an entrepreneur with more than five decades of wide experience in Pharma Industry and has competent knowledge and experience in financial and accounting areas, Mr. Dadha was Managing Director and Promoter of erstwhile Tamilnadu Dadha Pharmaceuticals Limited He is also trustee of many Charitable Trusts. He was the Member of Tamilnadu Government constituted Drug Committees, namely The Drug Advisory Committee and the Committee for the development of Drug Industries in Tamilnadu. Presently, he is also a Director in the following Companies are Sun Pharma Advanced Research Company Limited, Wardex Pharmaceuticals Limited, Dadha Pharma Private Limited, and Kerala Chemists and Distributors Alliance Limited He is the Chairman of the Audit Committee and Remuneration Committee of Sun Pharma Advanced Research Company Limited
Ashwin S. Dani -
Non-Executive Independent Director - Director/Board Member
Mr. Ashwin S. Dani is Non-Executive Independent Director of Sun Pharmaceuticals Industries Limited He is a science graduate from the Institute of Science, University of Mumbai and U.D.C.T., University of Mumbai. He also holds a Masters Degree in polymer science from University of Akron, Ohio, USA and Diploma in colour science from Rensellaer Polytechnic, Troy, New York. He is Vice Chairman and Managing Director of Asian Paints (India) Limited, one of India's paint companies. He also holds a number of directorships and has been nominated by the government as a Trustee on the Central Board of Trustees of the Employees Provident Fund. He is also a member of the executive committee of the Federation of Indian Chambers of Commerce and industry.
Sailesh T. Desai -
WholeTime Director - Director/Board Member
Shri. Sailesh T. Desai is Whole Time Director of Sun Pharmaceuticals Industries Limited He graduate from Kolkata (Calcutta) University and is an entrepreneur with more than 30 years of industrial experience including 20 years in the pharmaceutical industry itself. He is a Director on the Board of following Companies: Caraco Pharmaceutical Laboratories Limited, Milmet Pharma Limited, Sun Fastfin Services Private Limited, Sun Pharmaceutical (Bangladesh) Limited, Sun Resins and Polymers Private Limited, Sun Speciality Chemicals Private, Limited, SPIL De Mexico SA DE CV, M.J. Pharmaceuticals Limited, Man Infra construction Limited, Universal Enterprises Private Limited, Shantilal Shanghvi Foundation and a trustee of Shree Uvasaggahar Trust
Keki Minoo Mistry -
Non-Executive Independent Director - Director/Board Member
Mr. Keki Minoo Mistry, CPA, is Non-Executive Independent Director of Sun Pharmaceuticals Industries Limited. At present, he is the Managing Director of Housing Development Finance Corporation Limited (HDFC). He joined HDFC in October, 1981. Prior to joining HDFC, Mr. Mistry worked in the Indian Hotels Company Limited as Accounts Officer. Mr. Mistry is a Fellow Member of the Institute of Chartered Accountants of India and a Member of the Michigan Association of Certified Public Accountants, USA. He has experience in Finance and worked as a consultant to the Commonwealth Development Corporation in Bangkok, Thailand, Mauritius, Caribbean Islands and Jamaica, Asian Development Bank and Mauritius Housing Company. Presently, he is the Chairman of Gruh Finance Ltd and Internet Global Services Private Limited, and is on the Board of Housing Development Finance Corporation Limited, HDFC Developers Limited, HDFC Bank Limited, HDFC Trustee Company Limited, HDFC Standard Life Insurance Company Limited, HDFC Chubb General Insurance Company Limited, Infrastructure Leasing and Financial Services Limited, Mahindra Holidays and Resorts India Limited, The Great Eastern Shipping Company Limited, Nex Gen Publishing Limited and India Value Fund Advisors Private Limited He serves as the member of Shareholders’ investors’ Grievance Committee of Housing Development Finance Corporation Limited, member of Audit Committees of HDFC Standard Life Insurance Company Limited, HDFC Trustee Company Limited, Gruh Finance Limited, infrastructure Leasing and Financial Services Limited and The Great Eastern Shipping Company Limited He also serves as the Chairman of Audit Committee of HDFC Chubb General Insurance Company Limited
Hasmukh S. Shah -
Non-Executive Independent Director - Director/Board Member
Mr. Hasmukh S. Shah is a Non-Executive Independent Director of Sun Pharmaceuticals Industries Limited Mr. Shah is a B.A Economics (Hons) and M .A in Sociology with first Rank in the University. Mr. Shah has over four decades of experience in senior management positions. He is the Chairman of Shaily Engineering Plastics Limited, Gujarat Gas Co. Limited and Oswal Multimedia KID Limited Mr. Shah is also a Director in the following Companies: Dinesh Remedies Limited, Supreme Petrochem Limited, ATUL Limited, Deepak Nitrite Limited, Cosmo Films Limited and Micro Inks Limited
Sudhir V. Valia –
Whole Time Director - Director/Board Member
Mr. Hasmukh S. Shah is a Non-Executive Independent Director of Sun Pharmaceuticals Industries Limited Mr. Shah is a B.A Economics (Hons) and M .A in Sociology with first Rank in the University. Mr. Shah has over four decades of experience in senior management positions. He is the Chairman of Shaily Engineering Plastics Limited, Gujarat Gas Company Limited and Oswal Multimedia KID Limited Mr. Shah is also a Director in the following Companies: Dinesh Remedies Limited, Supreme Petrochem Limited, ATUL Limited, Deepak Nitrite Limited, Cosmo Films Limited and Micro Inks Limited.
Sudhir V. Valia –
Whole Time Director - Director/Board Member
Mr. Sudhir V. Valia is Whole Time Director of Sun Pharmaceuticals Industries Limited He is a fellow Member of Institute of Chartered Accountants of India and carries more than two decades of taxation and finance experience. He joined the company in 1994, prior to which he was in private taxation practice. In addition to being on the Board of Directors of a number of companies in the group, he is also on the Board of Directors of Caraco
Dilip S. Shanghvi -
Executive Chairman of the Board, Managing Director - Managing Director
Shri. Dilip S. Shanghvi is Executive Chairman of the Board and Managing Director of Sun Pharmaceuticals Industries Limited He is a graduate from Calcutta University and has launched Sun Pharma in 1982 and carries industrial experience in the Pharmaceutical industry and at present he is the Chairman and Managing Director of the Company. He is a Director on the Board of following companies: Caraco Pharmaceutical Laboratories Limited, Detroit, USA, Sun Specialty Chemicals Private Limited, Sun Resins and Polymers Private Limited, Sun Fastfin Services Private Limited, Sun Petrochemicals Private Limited, SPARC Bio-Research Private Limited, Sun Pharma Global Inc., British Virgin Island, Sun Pharma De Mexico SA DE CV, SPIL De Mexico SA DE CV and Shantilal Shanghvi Foundation.
PRESS RELEASE
Sun Pharma reports strong performance
Q3 Sales Rs. 21450.000 Millions, Net Profit Rs. 6680.000 Millions
Mumbai, February
13, 2012: Sun Pharmaceutical Industries Limited (Reuters: SUN.BO,
Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) reported unaudited numbers for
the quarter and nine months ending December 31, 2011.
Highlights of
Q3FY12 consolidated financials
• Net sales/income
from operations at Rs 21450.000 Millions, registered a growth of 37% over same
quarter last year
• India branded generic
sales at Rs 6950.000 Millions, excluding third party manufacturing business,
grew by 17% over Q3 last year
• US finished
dosage sale is $ 208 million, and grew by 47% over Q3 last year
• International
formulation sales at $ 56 million
• EBITDA margin at
45%
• Net profit at Rs
6680.000 Millions, equivalent to 31% net margin.
Highlights of 9m
FY12 consolidated financials
• Net sales/income
from operations at Rs 56750.000 Millions, registered a growth of 33% over 9
months last year
• India branded generic
sales at Rs 20390.000 Millions, excluding third party manufacturing business,
grew by 18% over the same period last year
• US finished
dosage sale at $ 523 million, grew by 44% over the same period last year
• International
formulation sales at $ 168 million
• EBITDA margin at
40%
• Net profit at Rs
17670.000 Millions, equivalent to 31% net margin.
Taro financials
are included in the current quarter and nine month’s financials, but included
only a quarter and ten days in the previous year’s financials. As reported by
Taro, increase in its sales and profits this quarter may not be sustainable as
it was principally driven by increased selling prices on select products in the
US market even as the overall volumes were flat. Reported EBITDA and net margins
at the consolidated level for the quarter and nine months may also not be
sustainable.
These results were
taken on record by the Board of Directors at a meeting held in Mumbai today.
Dilip Shanghvi,
Chairman and Managing Director of the Company said, “Business performance is in
line with our expectations and the underlying market growth. We expect the
momentum to continue.”
India Branded
Generics – Strength in consistency
Sale of branded
prescription formulations in India is at Rs 6960.000 Millions for the third
quarter, accounting for 32% of total sales. For the first nine months, sales
were at Rs 2039 Millions. Excluding third party manufacturing business which
has been discontinued, underlying growth is 17% for the third quarter and 18%
for the nine months.
Sun Pharma holds
4.5% market share in the Rs.600000.000 Millions, pharma market, as per latest
AIOCD report. Overall, the company is now ranked no. 1 based on share of
prescriptions with 7 classes of specialists: psychiatrists, neurologists, cardiologists,
ophthalmologists, orthopedicians, gastroenterologists and nephrologists. 6 key
products were launched during the quarter taking the total to 20 for the first
nine months.
US Formulations–Work continues
Sale of finished dosage
products in the US is at $ 208 million in the third quarter of FY12, now
accounting for 47%
of total sales. For the first nine months, sale is $ 523 million.
Taro recently
announced its unaudited financials for the Oct- Dec quarter and full year 2011.
Net sales for the quarter is at $ 148 million, a growth of 44% over same period
last year, while the net profit for the quarter is at $62 million. Net sales
for the year are at $ 506 million, a growth of 29% over last year. The net
profit for the year is at $ 183 million.
Remediation efforts at the Caraco facility in Detroit are as yet,
ongoing.
Rest of World
Formulation sales
in markets outside of India and US accounted for $ 56 million in Q3FY12. Sales
for the nine months of FY12 are at $ 168 million. Excluding Taro sales outside
US, underlying sales growth for Sun Pharma business in these markets is in
excess of 20% in the quarter and the first 9 months.
Research – Investing for the future
Consolidated R and
D expense for Q3 FY12 is Rs 1240.000 Millions, or 5.8% of sales. For the first
nine months, R and D expense is Rs
3100.000 Millions, equivalent to 5.5% of sales.
In the third
quarter, ANDA for 1 product has been filed. After counting this, cumulatively
ANDAs for 389 products have been filed by Sun Pharma and Taro with the USFDA.
ANDAs for 3 products received approvals in the third quarter taking the total
number of approvals to 241. Counting these, ANDAs for 148 products now await
USFDA approval, including 18 tentative approvals.
A cumulative of
222 DMF / CEP applications have been made, with 150 approved so far. The total
number of patent applications submitted now stands at 558, with 274 patents
granted so far.
About Sun Pharma
Established in
1983, listed since 1994 and headquartered in India, Sun Pharma (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 India, US and several other markets across the world. In India, the company
is a leader in niche therapy areas of psychiatry, neurology, cardiology,
diabetology, gastroenterology, orthopedics and ophthalmology. The company has
strong skills in product development, process chemistry, and manufacturing of
complex API, as well as dosage forms.
CARACO
PHARMACEUTICAL LABORATORIES, LIMITED ANNOUNCES MERGER AGREEMENT WITH SUN
PHARMACEUTICAL INDUSTRIES LIMITED
Feb 22, 2011
Caraco Pharmaceutical Laboratories, Limited. announced that
on February 21, 2011 it entered into a merger agreement with Sun Pharmaceutical
Industries Limited (Sun Pharma), Sun Pharma Global, Inc, a wholly-owned
subsidiary of Sun Pharma organized under the laws of the British Virgin Islands
(Sun Global) and a newly-formed, indirect wholly-owned subsidiary of Sun Pharma
incorporated in Michigan. Sun Pharma and Sun Global collectively own 75.8% of
Caraco common stock. The merger agreement provides that all shareholders of
Caraco other than Sun Pharma and Sun Global will receive a cash payment of
$5.25 per share upon the closing of the transaction. As previously disclosed,
Sun Pharma and Sun Global had proposed a "going private" transaction
by which Sun Pharma, Sun Global and/or one or more of their affiliates would
acquire all of the outstanding shares of Caraco common stock not held by Sun
Pharma and Sun Global for a per share consideration of $4.75 cash. Caraco
entered into the merger agreement based upon the recommendation and approval of
the Independent Committee of Caraco's Board of Directors and the approval of
the Board of Directors. Upon completion of the transaction, Caraco will become
a privately held company and its common stock will no longer be traded on the
NYSE Amex.
CARACO
PHARMACEUTICAL LABORATORIES, LIMITED ANNOUNCES EXTENSION AND FUTURE TERMINATION
OF DISTRIBUTION AGREEMENTS WITH SUN PHARMACEUTICAL INDUSTRIES LIMITED
Dec 27, 2010
Caraco Pharmaceutical Laboratories, Limited announced that
the two distribution agreements with Sun Pharmaceutical Industries Limited
(Sun) have been extended until January 28, 2012 but will each terminate
following these extensions. The marketing agreement, which was originally set
to expire in January 2010, was extended for a one year renewal last year and is
being extended for an additional one year term. The Distribution and Sale
Agreement, entered into in January 2008, had a three year term. This agreement
renewed for an additional one year term when neither party opted to cancel.
Caraco and the Independent Committee of Caraco's Board of Directors approached
Sun and attempted to negotiate long term renewals for each agreement; however,
Sun exercised its right to end the agreements, citing margin constraints due to
competitive pricing pressures. Accordingly, Sun has informed Caraco of its
intention to transfer the sales and distribution of Sun products from Caraco to
Sun and/or its wholly-owned affiliates to enhance its ability to compete. In
order to minimize disruption for customers, Caraco and Sun will work towards a
smooth transition of the sales and distribution of Sun products to Sun and/or
its wholly-owned affiliates when the contracts terminate in January, 2012.
PROFILE:
They make speciality pharmaceuticals and active pharmaceutical ingredients. Their brands 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. Sun Pharma came into existence as a startup with just 5 products in 1983.
In the time since, they have crossed several milestones to emerge as a leading pharma company in
They have reached leadership in each of the therapy areas that they operate in, and are rated among the leading companies by key customers. Strengthening market share and keeping this customer focus remains a high priority area for the company.
In the post 1996 years, they have used a combination of
internal growth and acquisitions to drive growth; important mergers were those
of the
Under a recent corporate development, the areas related to new molecular entities and drug delivery systems are proposed to be demerged into a separate company.
HISTORY
Sun Pharma began in 1983 with just 5 products to treat
psychiatry ailments. Sales were initially limited to 2 states - West Bengal and
Realizing the fact that research is a critical growth driver, they established their research center SPARC in 1993 and this created a base of strong product and process development skills.
Sun Pharma was listed on the main stock exchanges in
Their first API manufacturing plant was built in Panoli in 1995, for acces s to high quality actives ahead of competition, and to tap the vast international opportunity for speciality APIs.
Another API plant, their Ahmednagar plant, was acquired from the multinational Knoll Pharmaceuticals in 1996, and upgraded for approvals from regulated markets, with substantial capacity addition over the years. This was the first of several sensibly priced acquisitions, each of which would bring important parts to the long-term strategy.
By 1997, their headquarters were shifted to Mumbai, the
commercial capital of the country. They began on the first of their
international acquisitions with an initial $7.5 million investment in Caraco
Pharm Labs,
GROUP COMPANIES
Caraco
Pharmaceutical Laboratories
Based in Detroit,
Michigan, Caraco develops, manufactures, market and distributes generic and
private label pharmaceuticals* and markets them throughout the United States. The
corporation's present portfolio consists of a number of products in various
strengths and package sizes, across a variety of therapeutic segments,
including epilepsy and hypertension. For the most recent year ending March
2009, Caraco had sales of over $337 mill.
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 Detroit. Since August 1997, capital infusions and
loans have primarily come from Sun Pharma.
Sun Pharma'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 on March 2009, Sun Pharma owns approx 76% on a
diluted basis of the outstanding common shares of Caraco. Sun Pharma has two R
and D centers in Baroda and Mumbai, where development work for generics is
done.
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.
MILESTONES
1983
Sun Pharma begins operations in
Kolkata with 5 psychiatry - based products, first with 2 people and then with a
10 - employee team. Year 1 turnover - Rs. 1 million. Within a year, the
marketing effort is expanded to cover all eastern states. A compact
manufacturing facility for tablets/capsules is set up at Vapi.
1986
Administrative office is set up in Mumbai. Customer coverage
extends to select cities in
1987
Marketing operations are rolled out nation-wide.
1988
With the launch of the brands Monotrate and Angizem, the first few cardiology products are launched. They feature for the first time in a market audit by the prescription tracking company, ORG* at rank 107th with 0.1% market share.
1989
The corporate office is shifted to
1991
Construction begins at the first research center SPARC (Sun Pharma Advanced Research center), with 46,000 sq ft of research space, and investments of almost the size of that year's profits. The company's turnover is Rs. 97.4 millions , and market rank is 70th.
1993
SPARC, the first research center, is inaugurated by His
Excellency Shri K. R. Narayanan, the Vice President of India. An office is
begun in
1994
After an IPO in October, they are listed on the major stock
exchanges in
1995
Their first API plant at
Panoli starts production.
A new division, Aztec, now renamed Azura, is begun for cardiology products,
with a further reallocation of products across divisions. Inca, a new division
to market critical care medication to intensive care units begins operations.
International marketing is strengthened with offices in
1996
An API-manufacturing unit at Ahmednagar, the first of the their acquisitions, is bought from Knoll Pharma. An equity stake is also picked up in Gujarat Lyka Organics Limited a manufacturer of Cephalexin Active with a USFDA approval for the intermediate, 7ADCA. At the close of the year, they rank 27th with 2 products among the country's top selling 300 pharma brands. Product registrations are now in place across 24 countries.
1997
They begin the first of their international acquisitions. As part of a technology-for-equity agreement, a stake is acquired in a generic dosage form manufacturer; the Detroit-based Caraco Pharm Labs. An equity stake is 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) is merged with Sun
Pharma. Non profitable/small generic lines and several smaller brands are
dropped to rationalize the product mix. TDPL's products offer a ready entry
with known brands and customer equity into new high growth therapy areas like
oncology and gynecology. Marketing is reorganized once again, this time into 6
speciality-focused divisions. A research and development facility over 6,000 sq
ft in Mumbai, the second research site, is established. This center is equipped
to make dosage forms and create supporting technical documentation for the
generic markets in North America and
1998
A basket of brands, which include several in the respiratory/asthma area, are acquired from Natco Pharma. Their new formulation plant at Silvassa commences operations.
1999
Rank moves within the top 10 in the domestic market. For a quick
entry in ophthalmology, Milmet Labs is merged into Sun Pharma. The Cephalexin
API manufacturer Gujarat Lyka Organics is merged with Sun Pharma. 6 brands now
feature among the leading 300 prescription pharma brands in
2000
Ranked 5th among all companies in the domestic market on a monthly basis. Pradeep Drug company, a Chennai based API manufacturer is merged with Sun Pharma.
Plans are shared to set up a new research campus in Chennai,
which is later dropped as a suitable site is found in
2001
A new formulation plant is built in Dadra. This new plant is spread over a 5-acre site with built up area of 120,000-sq. ft. and has been designed and built to comply with international regulatory requirements, such as the UKMHRA and USFDA.
The erstwhile TDPL division is renamed Spectra. A new division, Arian, targeting cardiologists/physicians and diabetologists, is launched.
2002
Forbes Global ranks Sun Pharma in the list of best small 200 companies for 2002 (turnover less than $500 million).
Sun Pharma is selected as the best company by Express Pharma Pulse, for overall performance for 2002 (in the category A - market share over 2.5%).
4 manufacturing sites win the prestigious IDMA awards.
Work commences on a new, state-of-the-art drug discovery
campus in
Work begins on a new R and D center in Mumbai, with 50,000 sq. ft. floor area for projects aimed at the North American and European markets.
2003
Forbes Global ranks Sun Pharma in the list of the best small 200 companies for 2003 (turnover less than $500million).
Sun Pharma is rated amongst the best-managed companies for 2003 across all sectors. (Business Today-AT Kearney study of best-managed companies)
2004
Sun Pharma acquires common stock and options from 2 large shareholders of Caraco, increasing stake to over 60% from 44% at a total outlay of about $42 million. By 2007, this stake has reached 75% on a diluted basis.
The formulation site in
The BT Stern Stewart survey places Sun Pharma among the top
20 wealth creators in
Construction at a formulation manufacturing site at
Their first joint venture manufacturing unit, in
Two of Sun Pharma's API factories receive USFDA approval, taking the total
number of US FDA approved sites to three.
Sun Pharma acquires
a Cephalosporin Actives manufacturer,
Phlox Pharma, with European
approval for cefuroxime
axetil amorphous. By 2007, a
formulations facility to make sterile
and non sterile formulations have been built, and the API and non-sterile
sections have been approved by the USFDA.
Niche brands are bought from the San Diego, US based Women's First Healthcare.
(WFHC, not listed). These brands are the gynecological Ortho-Est (estropipate),
and the antimigraine preparation Midrin.
Forbes Global ranks Sun Pharma in the list of most valuable companies for 2004 (turnover
less than $2bill).
2005
Sun Pharma buys a plant
in
Sun Pharma acquires the intellectual property and assets of Able Labs from the
US District Bankruptcy court in
Dilip Shanghvi, the CMD, receives the EandY Entrepreneur of the Year award in
healthcare and life sciences for 2005.
Sun Pharma is selected by Forbes amongst the best 200 companies (sales less
than USD 1 billion) in
2006
Announced the demerger of innovative business with pipelines, people, equipment and funding, into a new company.
2007
Completed the demerger of the innovative business, with
requisite legal and regulatory approvals. SPARC limited, the new company, is
listed on the stock exchanges in
In May 2007, they, along with the subsidiaries, signed
definitive agreements to acquire Taro Pharmaceutical Industries Limited,
(TAROF, Pink Sheets), a multinational generic manufacturer with established
subsidiaries, manufacturing and products across the
2008
Chattem Limited
In November 2008, they along with the subsidiaries, acquired
100% ownership of Chattem Chemicals, Inc., a narcotic raw material importer and
manufacturer of controlled substances with a approved facility in Tennessee.
This will offer vertical integration for the controlled substance dosage form
business in the
(*ORG - Operations Research Group Audit of Retail Chemist Sales, later renamed the IMS - ORG Retail Store Audit. Both ORG and IMS are the trademarks of their registered owners)
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 :
Our 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.
Our 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. 51.05 |
|
|
1 |
Rs. 81.09 |
|
Euro |
1 |
Rs. 67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--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 |
|
69 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.