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A Profile of Sun Pharma

Listed by Forbes at 38th amongst the world’s 50 most innovative companies, we’re an

international specialty pharmaceuticals company (2011-12 Revenues $1.6 billion, PAT $540

million, Market capitalization in November 2012 over $12.4 billion). Shareholder wealth has

multiplied manifold: Rs.1000 invested in the IPO in 1994, has grown to over Rs. 314,000.

Revenue mix

India and US are our predominant markets, and account for over 79% of sales. We also sell

in forty other markets-- in all, international markets account for a 62% of revenues (5 year

CAGR 39%).

Indian formulation, sales of specialty prescription brands in India, is 36% of revenues (5

year CAGR 20%). US generics are 43% of revenues (5 year CAGR 46%). International

formulations, ex US, are 14% of revenues. (5 year CAGR 41%). Specialty API sales, across

India and international markets are 7% of revenues.

Marketing strengths – India

Our market share in India has moved from less than 1% in 1994 (when we were first listed

on the exchanges) to one amongst the top three, at 4.7% of the Indian market (AWACS -

AIOCD Ltd Stockist Data Audit, September 2012). With 6 classes of specialists, we’ve been

ranked as the number 1 company by prescription share (SMARC Audit April – June 12).

We were the first to pioneer therapy-focused marketing divisions, and today seventeen

marketing divisions (3300 representatives) address niche areas like psychiatry, neurology,

cardiology, diabetology, gastroenterology, orthopedics and ophthalmology. Five core

therapy areas account for over 75% of our domestic prescription sales, and feature drugs

like Lipodox (liposomal doxorubicin), Octride (octreotide), Lupride ( lupreolide depot), to

name a few on our 600+ list.

In order to bring our customers the latest therapies, every year we develop and introduce

around 30 new branded generics; most of these are based on internally sourced API. Over

half of these products are technically complex, or use a differentiated delivery system.

Most of our brands are ranked among the top 3 for that molecule.

US generics

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We are present in the US generic market (2011-12 Revenues $ 730 million) directly, as

well as through two subsidiaries, Caraco, and Taro (NYSE TARO, market capitalization USD

2. 05 billion). Over the last decade, we’ve built up a significant presence in areas such as

dermatologics and controlled substances among the 259 ANDAs approved. Additionally,

136 ANDAs await approval, including 17 tentative approvals. With several plants in the US,

as well as USFDA approved plants in India, we have the flexibility of manufacturing offshore

or in the US (see: Manufacturing).

Marketing strengths- Emerging markets

The fastest growing part of our business relates to the sales of our ethical prescription

brands in 40 countries across the erstwhile CIS, China, and South East Asia, some countries

in Middle East and Africa, with a recent entry in the South American markets of Brazil,

Mexico, Peru and Columbia. A well-trained representative force promotes these specialty

brands for a prescription pull. Recently, we created a joint venture with MSD (Merck) to

develop and bring differentiated branded generics to emerging markets.

Marketing: Specialty APIs

Specialty APIs that address niche therapy areas are sold to large companies in Europe and

Latin America. Every year over 20 APIs are scaled up, both for internal use and the

international markets. Starting with just 2 products in 1995, the API list now numbers over

275, with all the processes developed in house. 229 interesting filings for US and Europe

have been made from these plants and are either approved or await approval.

Research & Development

We were the earliest among Indian companies to realize the advantage of investments in

research, with over $ 550 million invested so far, and typically 6% of revenues invested

each year. These investments have helped us differentiate with technology and create a

strong basket of products across markets. Some of these, like the anticancer Lipodox, or

the cancer therapy adjuvant Cytofos are the first or only generic copies available.

Based on the intellectual property we’ve created, 645 patents have been filed and 304

patents have been received. R&D projects are pursued at our research centers, SPARC (Sun

Pharma Advanced Research Center), in Baroda and in Mumbai, and at Taro’s research

centers in Israel and Canada.

Manufacturing

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We make products across 24 plants, of which 15 are approved by the USFDA or

European authorities.

Eight of our plants produce APIs, including separate suites to manufacture of high value

peptides, steroids, anti-cancers and hormones--enabling us to be completely integrated for

these products.

A range of solid oral dosage forms, injectables and other dosage forms is manufactured at

fifteen plants, of which three are in the US and one in Canada.

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Board

Israel Makov - Chairman

Mr. Israel Makov is the former President and CEO of Teva Pharmaceutical Industries Ltd. He joined Teva in 1995

and led the company's global expansion, managing over 12 acquisitions, two of which were the largest M&A

deals in Israeli history at the time. Prior to joining Teva, Mr. Makov led a number of companies in various

industries, and founded Israel's first biotech company, Interpharm, which was the first Israeli company at the

R&D stage to go public in the United States.

Currently, Mr. Israel Makov is Chairman of Given Imaging, a pioneer developer and the world's leading provider

of capsule endoscopy; Chairman of Biolight, a life sciences investment company; Chairman of Micromedic

Technologies Ltd., a cluster of companies engaged in cancer diagnostics, and Chairman of Eltav, a pioneer of

wireless monitoring of industrial valves. Until recently, Mr. Makov was also Chairman of Netafim, a smart

irrigation solutions company. His other notable engagements include member of the Board of Directors of the

Israel National Nanotechnology Initiative, a member of the Executive Board and Management Committee of the

Weizmann Institute of Science and a member of the Board of Governors of the Technion Israel Institute of

Technology. Mr. Israel Makov holds a B.Sc. in Agriculture and M.Sc. in Economics from the Hebrew University,

Jerusalem.

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Dilip S. Shanghvi - Managing Director

Mr. Dilip S. Shanghvi is the founder of Sun Pharmaceutical Industries Ltd. and has extensive industrial

experience in the pharmaceutical industry. A first generation entrepreneur, Mr. Shanghvi has won numerous

awards and recognitions, including CNN IBN’s Indian of the Year (Business) (2012), Business India's

Businessman of the Year (2012) and Ernst and Young's World Entrepreneur of the Year (2011). He has also been

awarded the Economic Times' Entrepreneur of the Year (2008), Business Standard’s CEO of the Year (2008) and

CNBC TV 18's First Generation Entrepreneur of the Year (2007).

Mr. Shanghvi is also Chairman and Managing Director of Sun Pharma Advanced Research Company Ltd., and

Chairman of the Shantilal Shanghvi Foundation. He holds a B.Com. from Kolkata University.

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Sudhir V. Valia - Executive Director

Mr. Sudhir V. Valia is a Member of the Institute of Chartered Accountants of India and carries more than three

decades of taxation and finance experience. He has been a director of Sun Pharma since the inception of the

company and is also on the board of Taro Pharmaceuticals Ltd...

Mr. Valia has won CNBC TV18's CFO of the Year in the Pharmaceutical and Healthcare Sectors for two

consecutive years (2011 and 2012). He has also been awarded the Adivasi Sevak Puraskar (2008-09) by the

Government of Maharashtra for his contribution towards the welfare of tribals, particularly in the field of

education in his capacity as director of the Shantilal Shanghvi Foundation.

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Sailesh T. Desai - Executive Director

Mr. Sailesh T. Desai has more than 28 years of industrial experience, 18 of which have been in the

pharmaceutical industry. Mr. Desai has had comprehensive corporate affairs experience, being involved in the

turnaround at Milmet prior to Sun’s acquisition as well as in the early stages of the company's growth. He holds

a B.Sc. from Kolkata University

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Hasmukh S. Shah - Non-Executive Independent Director

Mr. Hasmukh S. Shah has had over four decades of experience in senior management, most notably as former

Chairman and Managing Director of Indian Petrochemical Corporation Ltd...

Mr. Shah is Chairman of Gujarat Gas Company Ltd. as well as the Vice Chairman of GE Capital and advisor to GE

in India. He has had wide experience in various government departments, including as Joint Secretary to the

Prime Minister, as Secretary of Post and Telegraph, as Chairman of the National Institute of Design, the Institute

of Rural Management, Anand and the Gujarat Council of Science & Technology. He has been Chairman of the

Gujarat Ecology Commission, the Gujarat Institute of Desert Ecology, the Center for Fuel Studies and Research,

the Expert Committee on Disinvestment (Government of Gujarat), the Advisory Committee on Natural Gas,

Government of Maharashtra and the Vikram A. Sarabhai Community Science Centre.

He has been member of the Board of Governors of the Indian Institute of Technology, Powai, and is a member

of the BAIF Board of Trustees. He is also a member of the Governing Council at the Dhirubhai Ambani Institute

of Information and Communication Technology.

Mr. Shah has been Chairman of the Board at Shaily Engineering Plastics Ltd. and Director on the Boards of

Supreme Petrochemicals Ltd., Atul Ltd., Deepak Nitrite Ltd., Microinks Ltd., Cosmo Films Ltd., Dinesh Remedies

Ltd., Taro Pharmaceutical Industries Ltd., and advisor to British Gas India.

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Keki M. Mistry - Non-Executive Independent Director

Mr. Keki Mistry is Vice Chairman and CEO of the Housing Development Finance Corporation Ltd., one of India’s

leading housing finance providers. He has been actively involved in setting up several HDFC group companies

including HDFC Bank. Mr. Mistry is also Non-Executive Chairman of Gruh Finance Ltd. He has been deputed on

consultancy assignments for the Commonwealth Development Corporation (CDC) in Thailand, Mauritius and

the Caribbean Islands. He has also worked as a consultant for the Mauritius Housing Company and Asian

Development Bank.

He holds directorships for the following companies: HDFC Developers Ltd., Shrenuj and Company Ltd., HDFC

Standard Life Insurance Corporation Ltd., HDFC ERGO General Insurance Corporation Ltd., Infrastructure

Leasing and Financial Services Ltd., The Great Eastern Shipping Company Ltd., NexGen Publishing Ltd., HDFC

Asset Management Company Ltd., Greatship (India) Ltd., Intelenet Global Services Ltd., Griha Investments

(Mauritius), Association of Leasing and Financial Services Companies, India Value Fund Advisors Private Ltd. and

Torrent Power Ltd. He serves as director of the Bombay Chamber of Commerce and the Bombay Stock

Exchange.

Some of his recent recognitions include the CFO India Hall of Fame by the CFO Magazine in 2012, CA Business

Achiever of the Year award in the Financial Sector by the Institute of Chartered Accountants of India (ICAI) in

2011, Best CFO in the Financial Services category by the ICAI in 2008, Best Performing CFO in the financial

services sector for three consecutive years (2006, 2007, 2008) as well as CFO of the Year in 2008 by CNBC TV18

and Best Investor Relations Officer in the Corporate Governance poll by Asiamoney in 2008. Mr. Mistry holds a

B. Com degree in Advanced Accountancy and Auditing from the University of Mumbai and is a Chartered

Accountant. He is a Fellow of the Institute of Chartered Accountants of India and is a Member of the Michigan

Association of Certified Public Accountants.

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Ashwin Dani - Non-Executive Independent Director

Mr. Ashwin Dani is Vice Chairman of Asian Paints Ltd., the largest paint manufacturing company in India. Mr.

Dani is on the board of Wockhardt Hospitals Ltd., Asian Paints Ltd., Asian PPG Industries Ltd., Rangudyan

Insurance Broking Services Ltd. and Geetanjali Trading and Investments Private Ltd. and has been President of

the Board of Governors of the U.D.C.T. Alumni Association, Mumbai and President of the Indian Paint

Association (IPA). Mr. Dani has been nominated by the government as a Trustee on the Central Board of

Trustees of the Employees Provident Fund. He is also a member of the executive committee of the Federation

of Indian Chambers of Commerce and Industry (FICCI).

Mr. Dani has been awarded the Cheminor Award from the Indian Institute of Materials Management for

excellence in Supply Chain Management and Achiever of the Year award in the Chemical Industry by the

Chemtech Foundation. Mr. Dani holds a Bachelor of Science (Hons) Degree from the Institute of Science,

University of Bombay and Bachelor of Science (Tech) (Pigments, Paints & Varnishes) from U.D.C.T., University of

Bombay. He also holds a Masters Degree in Polymer Science from the University of Akron, Ohio and a diploma

in Color Science from Rensellaer Polytechnic, New York.

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S. Mohandchand Dadha - Non-Executive Independent Director

Mr. Mohanchand Dadha is an entrepreneur with more than five decades of experience in the pharmaceutical

industry in India. Mr. Dadha has been the Founder and Managing Director of the erstwhile Tamilnadu Dadha

Pharmaceuticals Limited. He is also a Trustee on many charitable trusts. He has been Member of the Tamilnadu

Government constituted Drug Committees, namely The Drug Advisory Committee and the Committee for the

Development of Drug Industries in Tamilnadu. Presently, he is also a Director in Sun Pharma Advanced

Research Company Limited, Wardex Pharmaceuticals Limited, Dadha Pharma Private Limited, and Kerala

Chemists and Distributors Alliance Limited. He is Chairman of the Audit Committee and Remuneration

Committee of Sun Pharma Advanced Research Company Limited.

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Financials

Figures for the year 2011-12

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Image Gallery

Corporate Logo

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Sun Pharma Headquarters in Mumbai

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Sun Pharma R&D Center Baroda

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Sun Pharma Manufacturing