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ANALYSIS

CORPORATE STRATEGY

SWOT Analysis of Sun Pharma Industries with USP, Competition-

Lupin
Parent
Company

Lupin

Category

Pharmaceutical

Sector

Healthcare

Tagline/
Slogan

Being lupin, enriching lives everyday

USP

Lupin is the worlds largest manufacturer of anti- tuberculosis


drugs

STP
Segment

Anti TB segment, Cardiovascular, Oral and inject able, paediatric


products APIs, Anti-Infectives segment

Target
Group

Healthcare professionals, doctors treating patients suffering from


TB, respiratory & cardiovascular diseases

Positionin
g

It is innovation led pharmaceutical company, which specializes in


generic, API & branded formulations for developed & developing
world.

SWOT Analysis
Strengths

1. Worldwide leader in Cephalosporin and Anti TB drugs


2. Considerable presence in market for drugs against Asthma,
Paediatrics, Diabetes, and CNS boosts the sales
3. In the US and Japanese market it is the largest generic player
4. Acquisition of Irom pharma helped to increase its product list
and in turn sales

5. Wide global footprint as it is present in over 70 countries


Weakness
es

1. High dependence on global formulation business with 84%


revenue coming from US market
3. Forecasting done on technological level is less
4. It operates in low growth segments such CNS, respiratory
diseases

Opportunit
ies

1.Increased health awareness


2. Emerging technological trends in drug delivery
3. Increasing prevalence of TB in developing countries

Threats

1.Unsuccessful assimilation of questions


2.Rigid opposition both from locals and global company
3. Soaring cost of discovering novel products

Competition
Competito
rs

1. Sun pharmaceuticals
2. Ranbaxy
3. Dr. Reddys lab
4. Cipla

Quality Manufacturing & Compliance: 12 sites in India; 3 in Japan; 1 in US;


2 in LATAM
Research: 2 sites in US; 2 in India; 2 in Japan; 2 in LATAM; 1 in Europe
Marketing & Corporate Development: Over 25 offices across the globe

Subsidiary Companies/Joint Venture


As on March 31, 2016, the Company had 30 subsidiaries and a joint venture.
On December 7, 2015, Lupin Atlantis Holdings SA, Switzerland and Lupin
Holdings B. V., Netherlands, wholly-owned subsidiaries of the Company, jointly
incorporated Lupin Pharma LLC, Russia, as a distribution company.

On March 8, 2016, Lupin Inc., USA, wholly-owned subsidiary of the Company,


incorporated Lupin Research Inc., USA, for carrying out R&D activities.

Transaction Cost- Transaction cost refers to the cost of providing for some
good or service through the market rather than having it provided from within
the firm.

Lupin also acquired a specialty product portfolio in Germany from Temmler


Pharma GmbH & CO. KG. The portfolio includes 13 fast growing specialty
products including key Central Nervous System products and other
specialty products.
Lupins acquisition of 100% equity stake in Medqumica Indstria
Farmacutica LTDA, Brazil marked the Companys foray into the high
growth Brazilian market and helped shore up its position in the Latin
American pharmaceuticals market.
The Company announce and complete the acquisition of Gavis
Pharmaceuticals LLC and Novel Laboratories Inc., in the US for USD 880
million; the largest buyout executed by an Indian Pharmaceutical
company in the US. The acquisition enhances Lupins scale in the US
generics market and also broadens Lupins pipeline in dermatology.

Benefits of Operating Under One Umbrella

An industry-leading quality transformation project has been initiated in


collaboration with PricewaterhouseCoopers (PwC) across all Lupin facilities,
starting with our Tarapur and Goa plants as a pilot.
Lupin commenced work on a new formulations facility at Sikkim;
expansion of our Oral Solid Dosage (OSD) facility and setting up a
Greenfield sterile formulation facility at Nagpur; commenced work on a
new OSD plant at Tottori, Japan as well as completed set up of an API
facility at Vishakhapatnam.
1,110 Lupinytts have been trained and certified for Lean, Six Sigma, TPM,
MOST and Investigator Training.
Lupins manufacturing network is ably backed by Lupins Global Supply
Chain (GSC) that ensures that inputs reach our plants and our products
reach customers on-demand and in-time.

SWOT Analysis of Sun Pharma Industries with USP, Competition-

Sun Pharma Industries


Parent
Company

Sun Pharma Industries

Category

Pharmaceutical

Sector

Healthcare

Tagline/
Slogan

Leadership through focused research

USP

Sun pharma fifth largest & most profitable company in India

STP
Segment

Cardiology, psychiatry, neurology, gastroenterology, dibetology

Target
Group

Healthcare professionals, pharmacists

Positioning

They are international specialty pharma company with strong


presence in Indian & US generics market

SWOT Analysis
Strengths

1. Strong growth in emerging market business


2. Introduction of Pantoprazole & Eloxatin in US market has very
limited competition
3. They have strong marketing & sales force of over 12,000
employees
4. They have successfully acquired Taro pharma which has
further consolidated their position in Indian markets
5. Strong brand presence in India and US markets

Weaknesse
s

1. Stiff competition from many Indian and other global brands


means limited market share growth
2. Limited presence in emerging markets and European
countries

Opportunit
ies

1. They can leverage their acquisitions to further increase the


growth
2. They can increase their presence in contract manufacturing
3. Increasing healthcare awareness in India

Threats

1. There is growing competition in generics market


2. Stringent patent regulations
3. High price sensitivity of consumers

Competition
Competitor
s

1. Cipla
2. Lupin
3. Ranbaxy
4. Dr. Reddys laboratories

Transaction Cost

Sun Pharma completed the acquisition of Ranbaxy Laboratories Limited


an integrated, research based, international pharmaceutical company in
March 2015. The combined entitys manufacturing footprint covers six
continents with products sold in over 150 nations with a stronger presence
in the US, India, Asia, Europe, South Africa, CIS and Russia and Latin
America. Sun Pharma now offers a large basket of specialty and generic
products encompassing a broad range of chronic and acute prescription
drugs, as well as undertakes proactive forays into global consumer
healthcare markets.
Sun Pharma has acquired Pharmalucence Inc. (USA). This acquisition
provides the Company access to sterile inject able facility supported by
strong R&D capabilities.
Sun Pharma and Merck & Co. Inc. entered into an exclusive worldwide
licensing agreement for Mercks investigational therapeutic antibody
candidate, tildrakizumab, (MK-3222), which is currently being evaluated in
Phase 3 trials to treat chronic plaque psoriasis, a skin ailment.
the Company entered into an agreement with GSK to acquire the latters
Opiates business in Australia, along with two manufacturing facilities. The
acquisition provides Sun Pharma access to a product portfolio consisting of
poppy derived Opiate raw materials that are primarily used in the
manufacture of analgesics for the treatment of moderate to severe pain.
Sun Pharma and AstraZeneca Pharma India Limited (AZPIL) entered into a
distribution services agreement in India for AstraZenecas brand Axcer,
a new brand of ticagrelor, a drug used to treat acute coronary syndrome
(ACS). It strengthens Sun Pharmas cardiology portfolio with the addition of
a new patented therapy.

Benefit of Operating under one Umbrella

Achieving 100% compliance to global CGMP standards in line with


regulator expectations.
Increasing R&D productivity and introduce innovative products to increase
the share of value-added products.
Minimize disruptions by undertaking modification only in case of clear
benefits.
Targeting strong business growth across the US, India and rest of the world
markets.
Continue to evaluate in-licensing opportunities to access latest generation
products.
Being one of the worlds leading pharmaceutical companies, Sun Pharma
has consistently invested in Research & Development (R&D) for
sustainable value creation. The R&D centers are supported by around
2,000 research scientists, and equipped with cutting-edge technologies.

Clinical studies of important products (complex and difficult to formulate)


have been carried out at our in-house clinical pharmacology units. This has
helped to maintain R&D quality and regulatory compliance with
significantly reduced cost.

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