Published By : 02 Nov 2015 | Published By : QYRESEARCH
India’s largest drug company, Sun Pharma, might be planning to cancel non-strategic business prospects. The plan is a part of the major integration process that Sun Pharma is going through with Ranbaxy, which Sun bought over in 2014 for US$4 bn.
The 23rd Annual General Meeting for Sun Pharma shareholders was held in Vadodara last Saturday, in which the shareholders were addressed. In the meeting, Dilip Sanghvi, the Sun Pharma Managing Director, said that the company could possibly incur specific charges for integration so as to create a long-term synergy from the acquisition with Ranbaxy.
Sanghvi, however, refused to disclose what the company meant by “non-strategic” businesses. Strides Arcolab was sold two marketing divisions by Sun Pharma, which the latter had inherited from Ranbaxy. The marketing division was selling drugs related to the central nervous system disorders.
Sanghvi also spoke of the overall strategy with Sun Pharma shareholders regarding the company’s integration with Ranbaxy. He said that the merger will immensely boost Sun Pharma’s productivity in research and development. It will also boost the company’s presence in the segments related to specialty drugs with a target of US$300 mn in synergy benefits before the end of the fiscal year 2018.
Sanghvi also hinted towards future evolution plans for Sun Pharma while the company gears up for them. He said that it will involve undertaking various initiatives in both inorganic as well as organic segments to let the company venture into high-risk areas.
As a part of this plan, Sanghvi also mentioned that ophthalmic drugs and dermatology might become the top segments that can be targeted for initiatives