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Sun Pharma In The News

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Sun Pharma charts global growth plans


At first glance, it may seem out of place to see domestic drug-maker Sun Pharma's Chairman and Managing Di'rector, Mr Dilip Shanghvi, with the recently appointed Chief Executive, Mr Kal Sundaram.
Until not too long ago, they were on different sides of the pharmaceutical divide, as Mr Sundaram had headed multi'national drug-maker GlaxoS-mithKline Pharmaceuticals in India, continuing with the drug-major at its Singapore of'fice.
'There is no divergence," Mr Sundaram told Business Line, speaking about two weeks af'ter his official appointment from earlier this month. "Philosophically, I hold the view that if you don't value something, you won't produce," he says, explaining why it is nec'essary to value intellectual property (IP). Even Sun is ap'plying for patents worldwide, he adds.
Joining in the meeting, min'utes later, Mr Shanghvi explains the rationale behind the top, significant appointment. As business continues to ex'pand and become bigger and more complex - the transition becomes easy with people who have handled complex busi'nesses in the past, he says.
Even as the drug-maker grows its branded generics business in India and the United States, Sun Pharma is looking to expand into other markets and achieve a critical mass, says Shanghvi.
In fact, besides giving strategic inputs to Sun Pharma on its operations across the globe, Mr Sundaram is also responsible for emerging markets. "We are scanning the global opportunities," he says, indicating that different markets will require different approaches.
Also on the agenda for Sun's top management in the year ahead, is the "unfinished busi'ness" of Taro, as closure of the $ 454 million deal to acquire the Israeli generic drug company continues to elude it. With over $ 100 million invested in Taro, "that makes Kal and my job more difficult", respon'ds Mr Shanghvi, to get the returtion capital invested. At present, Sun management will have to wait it out till the Israeli Supreme Court gives its verdict.
On its research front, Sun looks to keep its spending at about 8-10 per cent of sales. But could biologies and vaccines, an area that Mr Sundaram is familiar with from his Glaxo-days, come onto the Sun radar now?
"We have enough on our plate with what is going on now," responds Mr Sundaram, adding that while the company is not excluding any possibility, it is not focussing on it either. Mr Shanghvi reiterates that bi'ologies does not take priority, as there are only so many things that can be addressed with the resources at hand.
Despite the varying back'grounds, Sun's top representa'tives point out: the road ahead for Sun is focussed on growing faster than the industry, do more complex products and move up the value chain