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Sun Pharma In The News

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Sun Pharma to spend Rs 450 cr on research

 

Drug-maker Sun Pharma will spend a consolidated Rs 450 crore, about six per cent of its sales in the present financial year, on research and devel'opment, Mr Dilip Shanghvi, Sun's Chairman and Managing Director told analysts.
 
The company expects to grow between 28 per cent and 30 per cent this year, he said, adding that the research spend would continue at about six per cent, but on an increased turnover.
 
The research spending for the year would be across Sun, its United States subsidiary Caraco and Israeli drug-maker Taro.
 
 
 
 
The research spending for the year would be across Sun, its United States subsidiary Caraco and Israeli drug-maker Taro, whose long-drawn ac'quisition was completed in September 2010.
 
Sun Pharma clocked net sales of Rs 5,721 crore for the year ended March 2011, with a consolidated research expense 5.8 .8 percent of income.
 
Sun's Abbreviated New Drug Applications (to be able to sell in the US), was for a total 377 products, filed across Sun and Taro.
 
About 152 were awaiting approval, he said, as 225 of them had been approved by the US regulator, as on March 2011. The company's patent library comprised 549 patents, of which 248 had been granted.
 
REGULATORYWOES
But Sun's regulatory issues at its facilities in Cranbury (New Jersey) and Detroit (under Ca'raco) remain to be sorted out, though Taro's Canada plant was recently cleared by the regulatory authorities, he clar'ified.
Except for saying that "re'mediation efforts" were on at Detroit and New Jersey plants, Sun management did not give a timeline to resolving the issue, nor its cost.
 
In December last year, Sun had offered to buy out all out'standing shares in Caraco, in a move towards delisting. Sun holds about 76 per cent in the company. Shareholders will take up the issue, mid-next month, Mr Shanghvi said.
CAPEX
 
The company is also looking at a significant increased spend'ing this year, at Rs 450 crore, on three new sites, he said, adding that one of them would be in a Special Economic Zone, though no details were given.
Sun Pharma is also scouting for acquisition opportunities in the US and emerging mar'kets, Mr Shanghvi said.
 
Sun Pharma shares closed at Rs 465 on the BSE, up about 4.5 per cent, on Monday.