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| At about USD 28 billion, the US generic market is our topmost priority. So far, we've had reasonable success as a generic company with the advantages of four well-planned acquisitions, supported by integration and product development in India. |
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| In May 2007, we signed definitive agreements to acquire Taro Pharmaceutical Industries Ltd., (TAROF, Pink Sheets), a multinational generic manufacturer with established subsidiaries, manufacturing and products across the U.S., Israel, Canada for $454 mill. This all-cash deal is subject to Taro shareholder approval and requisite regulatory clearances. We intend to fund this through a USD 350 million FCCB that we raised in 2004. |
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| We have also taken the requisite shareholder approvals to raise Rs.3500 crores (about $860 mill) in order to be ready for any further acquisition opportunities that may arise in the US generic space. |
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| Our initial investment through Caraco with a US $7.5 million equity purchase in 1997, and the subsequent scaling up of the business there with revenues moving from US $0.8 million in 1997 to over USD 117 million in March 2007, has inspired our long term plans for the US. |
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So far, Caraco has been competing as a generic manufacturer that is integrated for some of its bulk actives to Sun Pharma's API sites in India. Caraco's 34 ANDAs currently marketed, includes ANDAs that it markets on behalf of Sun Pharma. Several of Caraco’s products are amongst the top 3 in terms of market share. |
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| Between Sun Pharma and Caraco, we have about 83 filings awaiting approval from the USFDA out of Caraco, the sites in Byran and Cranbury, and a site in Halol, India. This is a mix of simpler generic filings, complex filings like those for injectables or sprays and a few patent challenges. |
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| Our Halol site follows international systems and processes and can make a range of dosage forms across tablets, capsules, ophthalmic and difficult-to-make products like injectables, nasal sprays and soft gel capsules. Of specific interest is the existence of special dedicated areas to manufacture dosage forms for categories such as steroids, anticancer and hormones. |
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| We have a number of filings awaiting approval from a USFDA approved site in Halol, India. This large manufacturing site follows international systems and processes and can make a range of dosage forms across tablets, capsules, ophthalmic and difficult-to-make products like injectables, nasal sprays and soft gel capsules. Of specific interest is the existence of special dedicated areas to manufacture dosage forms for categories such as steroids, anticancer and hormones. Between Sun Pharma and Caraco, currently over 44 filings await approval - a mix of simpler generic filings, complex filings like those for injectables or sprays and a few patent challenges. |
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| An acquisition of 2 brands from the San Diego-based Women's First Healthcare - Midrin and Ortho-Est. - has enabled a low cost entry into the branded generic area at a reasonable cost. We believe these products, currently marketed through Caraco, offer good potential. |
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In late 2005, we acquired two plants - in Cranbury, New Jersey and in Bryan, Ohio.
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| The Cranbury facility (the erstwhile Able Labs) offers 275,000 sq. ft. with special suites for the manufacturing of controlled substances. The controlled form manufacturing at this site will eventually tie in with the acquisition last year of a company in Hungary. Our Hungarian site (ICN Hungary, formerly known as Alkaloida) is one of the few worldwide authorised to make API for controlled substances. Over time, once the required regulatory approvals are received, we intend to compete in the US market as an integrated generic company in this high value area. |
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| Lotions, ointments and liquids is an interesting area but expensive to compete in, if the products have to be shipped from India. Our Bryan, Ohio, facility acquired from Valeant Pharma will equip us to compete in this product opportunity at a sensible cost. |
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| The funds that we had raised though our initial public offering in 1994, had powered our growth over the next decade and transition from a medium sized Indian company, to a company with international presence. With the learning that we have gathered from our US acquisitions so far, as we deploy the FCCB funds, we believe we are on the threshold of international-led growth. |
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| Click here to view Caraco's product list. |
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