3. Marketing Strategy of Sun
Pharmaceuticals
By,
AMAN DUBE K( QA,4)
VIVEK VIJAYAN (QA, 18)
ABDUL FAYAZ BAIG ( P’CEUTICS, 1)
4. Timeline
1983
Established with
five Psychiatry
Products
1988
First Cardiology
Products- Monotrate
and Angizem
launched
1997
Acquisition of Tamil
Nadu’s Dadha
Pharmaceuticals and
Caraco Pharmaceuticals
Of detroit
2000
Became Fifth
Largest company
2008
Chattem
Pharmaceuticals
2010
Acquisition Of Taro
Pharmaceuticals.
Crossing One
Billion $ Sales
2012
Acquisition of Dusa
Pharmaceuticals
2013
Crossing 2 billion$
Sales becoming second
largest in India
2014
Acquisition of
Ranbaxy becoming
India's largest in terms
of market share
5. Strategy and Approach
Crossed US$ 1 Bn
sales - 27th year
Crossed US$ 2 Bn
sales - 30th year
Create Sustainable
Revenue Streams
Focus: Chronic therapies
Differentiation:
Technically complex
products
Speed to market
Seek Cost leadership
Vertical integration:
Development through
manufacturing (API
and finished dosage) to
marketing
Optimize operational
costs
Balance
Profitability and
investments for
future
Acquisitions yield
high ROI
Development of
complex generics
6. A Road less travelled
Focus on
super
specialty
prescriber
and
therapeutic
niche
segments
such as
Psychiatry,
neurology
Marketing
strategy
clearly
focused on
optimizing
profits.
Pricing
strategy is
based on
par with
the
leading
players.
Universal
coverage of
customers
in the
specialities
of choice
Product
strategy is
to provide
a complete
range of
products in
a given
prescriber
segment
Attractive
incentives
on
achieving
the targeted
sales
7. Sun Rising in the west
First Indian
company to
cross 1 billion
$ mark in US.
Sun pharma has built up
an enviable product
portfolio through a
steady stream of ANDAs
(Abbreviated New Drug
Applications) over the
years.
It has so far 237
approved ANDAs and
147 pending ANDAs
70% of its
revenues
generated from
US
branded
generics market
and rest of the
world.
8. SWOT Analysis
• Threats• Opportunities
• Weakness• Strengths
1.Market Leader in
chronic segments
2.Introduction of
Pantoprazole &
Eloxatin in US market
has very limited
competition
3.Strong brand presence
in India and US markets
1.To Tap Multiple
opportunities by
manufacturing
multiple dosage
forms
2.Enhancing
Presence in
emerging markets
1.There is growing
competition in
generics market
2.Stringent patent
regulations
3.High price
sensitivity of
consumers
1.Can leverage their
acquisitions to further
increase the growth
2.Increase their
presence in contract
manufacturing
3.Increasing healthcare
awareness in India
10. COMPETITION ANALYSIS
• It is an assessment of the
strengths and weaknesses of
current and potential competitors.
• This analysis provides both an
offensive and defensive strategic
context to identify opportunities
and threats.
13. DIFFERENTIATION
Acquisition of
DUSA
Pharmaceuticals
Fully integrated specialty
pharma company focusing
primarily on the
development and
marketing of its
Levulan®photodynamic
therapy (PDT) technology
platform
It has a patent protected
drug device treatment for
curing skin lesions.
The US alone has over 5
million treatments
annually with DUSA
having 5% share of it.
A drug device combination
is difficult to copy for a
generic company.
14. Expand new markets
The key growth drivers for future include an increasing shift to
the use of generics medicines, accompanied by patent expiries
in the US and volume-driven growth in pharmerging markets.
Set up manufacturing
facilities in Brazil,
Mexico and Bangladesh
to comply with local
regulatory requirements.
Focus on ensuring long-
term competitiveness of
the formulations business
through strong backward
integration
Establish long-term
contracts with customers
in regulated markets for
sustainable revenue
growth and margins
16. Increase in market share
Enhanced
drugs
volumes
New drug
launches
Minor
price
increases
Ensuring
timely
product
launches
Focus on
fast
growing
chronic
therapies
Acquisitions
17. Market
follower
strategy
The strategy of product
imitation might be as
profitable as a strategy
of product innovation
Here the innovator bears
the expense of
developing a new
product, however
another firm may copy
or modify the same
product and may incur
high profits.
18. Major route of Eliminating
Competition
1996
ACQUISITIONS AND JOINT VENTURES
30. R&D
The company has incurred `2.05
bn in Q1FY’14 as R&D expense.
Spends 6% of its revenues on
R&D
31. FILINGS
Pipeline for Abbreviated new drug applications and New
molecular entities.
Aggressive PARA IV Filings
ANDA filings stood at 453 with the USFDA as on June 30,
2013 and received 9 ANDA approval during Q1FY’14
The combination of Sun Pharma and Ranbaxy will operate
with 629 new generic drug approvals in the US alone.