Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi, Gujarat, with five products to treat psychiatry ailments. Cardiology products were introduced in 1987 followed by gastroenterology products in 1989. Today, it is the largest chronic prescription company in India and a market leader in psychiatry, neurology, cardiology, orthopedics, ophthalmology, gastroenterology and nephrology. The 2014 acquisition of Ranbaxy has made the company the largest in India, the largest Indian pharma company in the US, and the 5th largest speciality generic company globally. Over 72% of Sun Pharma sales are from markets outside India, primarily in the United States. The US is the single largest market, accounting for about 50% turnover; in all, formulations or finished dosage forms, account for 93% of the turnover. Manufacturing is across 26 locations, including plants in the US, Canada, Brazil, Mexico and Israel. In the United States, the company markets a large basket of generics, with a strong pipeline awaiting approval from the U.S. Food and Drug Administration. Sun Pharma was listed on the stock exchange in 1994 in an issue oversubscribed 55 times. The founding family continues to hold a majority stake in the company. Today Sun Pharma is the second largest and the most profitable pharmaceutical company in India, as well as the largest pharmaceutical company by market capitalisation on the Indian exchanges. The Indianpharmaceutical industry has become the third-largest producer in the world in terms of volumes and is poised to grow into an industry of $36.7 billion from $20 billion in 2015. In terms of value India still stands at number 14 in the world. In 2009 Sun Pharma's Caraco Pharmaceutical's plant in Detroit was closed due to unsanitary conditions resulting in the seizure of $20 million of drugs by the FDA for contamination issues. In December 2016 the FDA sent Sun a warning letter about nine violations at its manufacturing plant in Halol. Sun Pharma requested USFDA to withdraw approval for 28 Abbreviated New Drug Applications belonging to its wholly owned subsidiary Ranbaxy Laboratories.
Acquisitions and Joint Ventures
Sun Pharma has complemented growth with select acquisitions over the last two decades. In 1996, Sun purchased a bulk drug manufacturing plant at Ahmednagar from Knoll Pharmaceuticals and MJ Pharma's dosage plant at Halol that are both U.S. FDA approved today. In 1997, Sun acquired Tamil Nadu Dadha Pharmaceuticals Limited based in Chennai, mainly for their extensive gynaecology and oncology brands. Also in 1997, Sun Pharma initiated their first foray into the lucrative US market with the acquisition of Caraco Pharmaceuticals, based in Detroit. In 1998, Sun acquired a number of respiratory brands from Natco Pharma. Other notable acquisitions include Milmet Labs and Gujarat Lyka Organics, Pradeep Drug Company, Phlox Pharma, a formulation plant at Bryan, Ohio and ICN, Hungary from Valeant Pharma and Able Labs, and Chattem Chemicals. In 2010, the company acquired a large stake in Taro Pharmaceuticals, amongst the largest generic derma companies in US, with operations across Canada and Israel. The company currently owns ~ 69% stake in Taro, for about $260 million. In 2011, Sun Pharma entered into a joint venture with MSD to bring complex or differentiated generics to emerging markets. In 2012, Sun announced acquisitions of two US companies: DUSA Pharmaceuticals, a dermatology device company; and generic pharma company URL Pharma In 2013, the company announced an R&D joint venture for ophthalmology with the research company, Intrexon. On 6 April 2014, Sun Pharma announced that it would acquire 100% of Ranbaxy Laboratories Ltd, in an all-stock transaction, valued at $4 billion. Japan's Daiichi Sankyo held 63.4% stake in Ranbaxy. After this acquisition, Sun Pharma has become the largest pharmaceutical company in India, the largest Indian Pharma company in US, and the 5th largest generic company worldwide In December 2014, the Competition Commission of India approved Sun Pharma's $3.2 billion bid to buy Ranbaxy Laboratories, but ordered the firms to divest seven products to ensure the deal doesn't harm competition. In March 2015, Sun Pharma announced it had agreed to buy GlaxoSmithKline's opiates business in Australia to strengthen its pain management portfolio.
SPARC
In 2007, Sun Pharma demerged its innovative R&D arm, and listed it separately on the stock market as the Sun Pharma Advanced Research Company Ltd.. In 2013, SPARC declared revenue of Rs. 873 million. SPARC focuses on new chemical entities research and new drug delivery systems and offers an annual update of its pipeline.
Awards
Sun Pharma stood second in the India's Most Reputed Brands list in a study conducted by BlueBytes, a leading Media Analytics firm in association with TRA Research, a brand insights organization.
