Focus on healthcare may increase in the post-COVID period and hence generics are likely to retain their importance as an effective and economical health solution.
Drug major Sun Pharma will remain focussed on growing its businesses faster than the market in which it operates, the company said in its Annual Report 2019-20. Supply chain protection, ensuring optimum utilisation of the factories and working closely with vendors to ensure continuity of supply will be the key focus areas of the company going forward, it added. “We will continue to focus on growing each of our businesses faster than the market in which we operate. R&D investments in developing a differentiated generic pipeline as well as in building our Specialty pipeline will continue in the coming years,” Sun Pharmaceutical Industries MD Dilip Shanghvi said in his message to the shareholders.
The company’s strategy of developing the Specialty business as an additional growth engine has started delivering, with a gradual ramp up in specialty revenues, he added. “We expect this momentum to continue over the next few years, although the COVID-19 pandemic and lockdowns may throw up some uncertainties in the near-term,” Shanghvi said.
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The specialty business is also helping the company to move up the pharmaceutical value chain and bring more innovation to its business, he added. “We have invested significant resources over the past few years in building this business and are now focusing on commercial execution to ensure that future cash flows justify these significant investments,” Shanghvi said.
Highlighting the importance of generics, he said generics will continue to be an important part of the overall healthcare management globally. Focus on healthcare may increase in the post-COVID period and hence generics are likely to retain their importance as an effective and economical health solution, he added.
“Sun Pharma’s strong positioning in the global generics industry and continued investments for the future will ensure that it remains a prominent player in this space,” Shanghvi said. About the impact of the pandemic on the company, he said, “Despite our proactive COVID risk response initiative, we do estimate some softening of sales in the near term due to the lockdowns and economic slowdown across various countries, although it is difficult to quantify the impact as of now”.
The endeavour of Sun Pharma will be to ensure that it is the least impacted, he added. Other key focus areas will include cash collection and cash conservation in the business to ensure adequate liquidity, focus on cost optimisation and target higher efficiencies and continuing to invest in developing new technologies and innovative products, Shanghvi said.