Sun Pharmaceutical to Open into Japanese Market with Daiichi Sankyo
Published By : 11 Aug 2014 | Published By : QYRESEARCH
Sun Pharmaceutical is on the verge of taking over the Ranbaxy Laboratory from Daiichi Sankyo. They plan to use this acquisition to gain entry in to the Japanese pharmaceutical market.
The medicine industry’s giant will be able to crack into the Japanese market three to four years after their deal with Ranbaxy closes. Sun Pharma representatives have not yet commented on this move.
Japan holds the thirds largest drug market, after the U.S. and Europe. Coupled with its relative proximity to India, the Indian drug-makers can find a fruitful venture into the Japanese market. The Japanese government will raise its share to 60% by 2017, which makes their market the best place to do business.
Amit Chander, a Baring Private Equity partner, said that the Japanese market is far more brand conscious than any other. They do not necessarily equate high quality with low prices. The Indian drug company will have to tackle the issue differently than it did in the U.S. and Europe. He also added that the market strategy of selling raw materials to the Japanese will not create any major profits for a company as big as Sun.
In the first three years of taking over, Sun Pharma intends to re-establish the sales division in Ranbaxy towards integrating procurements and supply chains, in a bid to generate more profits from that sector. It will also use this time duration to increase their efficiency in the Indian and American markets to earn $250 million.
Sun Pharmaceutical will utilize the third and fifth year to take advantage of the Ranbaxy infrastructure to launch products into markets that it doesn’t have any presence in yet.