Formulations Fired

Updated: Jul 27 2002, 05:30am hrs
Sun Pharmaceutical notched up 13.6 per cent growth in sales to Rs 190 crore during the quarter to June 2002. Domestic sales, up 13.7 per cent to Rs 156.7 crore, account for 82.4 per cent of total sale, while export up 13.4 per cent to Rs 29.4 crore around 15 per cent.

The strategy stresses formulations for growth in domestic and export market. Domestic formulation business grew by 15.6 per cent to Rs 126 crore. Export of formualtions was up 36 per cent but contributed only 20 per cent to total export because of its poor show in the CIS countries and China. The company hopes it will be better in the current year.

The sales grew on the back of expanded therapy areas, focussed marketing in niche areas and new brand launches. Around three per cent growth comes from new introductions. Sun Pharma launched eight new products during the quarter. The company has pinned high hopes on the drug, “Lupride Depot”, used as a - once- a- month injection for advance prostate cancer, endometriosis and fibroids. Another product, “Surfact” is a high value surfactant for endotracheal infusion in premature babies against severe respiratory choke to death for want of oxygen.

Operating profit increased by 20.2 per cent to Rs 56 crore and margin from 28 per cent to 29.5 per cent. Net profit increased by 18 per cent to Rs 48 crore. The company holds top slots in psychiatry, neurology and gastroenterology. It has substantial presence in cardiology, orthopaedics and pulmonology. Anti-depressant is its core competence. The company has the largest range of products in this segment. Cipla and Wockhardt are the only major competitors in these segments.

Oral antidiabetic is one of the fastest growing segments in the drug industry. The company has a wide range of products in all major types of diabetic molecule. The company has virtually no competition in resiglitazone, glipizide and repaglinide segment.

The company set up a new Rs 25 crore plant at Dadra to turn out 150 million tablets and capsules. This expansion will strengthen its productive base. Its Detroit -based US subsidiary, Caraco Pharmaceuticals is close to break through the logjam of losses in the past. Sun Pharma’s investment in the company is around Rs 170 crore. Caraco has received an approval from FDA, USA, for five generics. The US market for these generics is worth around $ 175 million.

During the quarter, the company more than doubled its research & development expenditure from Rs 5 crore to Rs 13.6 crore and as a percentage of sales turnover from three to 7.2.

Despite an impresive array of products, the domestic market provides a limited opportunity for growth. So Sun Pharma has to fan out to export market for growth.

Dhruv Rathi