Marketing Strategy of Sun Pharmaceuticals
By, AMAN DUBE K( QA,4) VIVEK VIJAYAN (QA, 18) ABDUL FAYAZ BAIG ( P’CEUTICS, 1)
Timeline 1983Established with five Psychiatry Products
1988First Cardiology Products- Monotrate and Angizem launched
1997Acquisition of Tamil Nadu’s Dadha Pharmaceuticals and Caraco Pharmaceuticals Of detroit
2000Became Fifth Largest company
2008 Chattem Pharmaceuticals
2010Acquisition Of Taro Pharmaceuticals. Crossing One Billion $ Sales
2012Acquisition of Dusa Pharmaceuticals
2013Crossing 2 billion$ Sales becoming second largest in India
2014Acquisition of Ranbaxy becoming India's largest in terms of market share
Strategy and Approach
Crossed US$ 1 Bnsales - 27th year
Crossed US$ 2 Bnsales - 30th year
Create Sustainable Revenue StreamsFocus: Chronic therapiesDifferentiation: Technically complex productsSpeed to market
Seek Cost leadershipVertical integration: Development through manufacturing (API and finished dosage) to marketingOptimize operational costs
Balance Profitability and investments for
futureAcquisitions yield high ROIDevelopment of complex generics
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
Sun Rising in the westFirst 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.
SWOT Analysis
• Threats• Opportunities
• Weakness• Strengths1.Market Leader in chronic segments2.Introduction of Pantoprazole & Eloxatin in US market has very limited competition3.Strong brand presence in India and US markets
1.To Tap Multiple opportunities by manufacturing multiple dosage forms2.Enhancing Presence in emerging markets
1.There is growing competition in generics market2.Stringent patent regulations3.High price sensitivity of consumers
1.Can leverage their acquisitions to further increase the growth2.Increase their presence in contract manufacturing3.Increasing healthcare awareness in India
Segmental Analysis
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.
Competition analysis
Identify competitors
Ranking
Traffic analysis
Bench marking
Strategies Differentiation
Expand new markets
Protect market shares
Increasing market shares
Market follower strategies
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.
Expand new marketsThe 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
Protect market shares
Continuous innovations
Proactive marketing
Defensive marketing
Increase in market share
Enhanced drugs
volumes
New drug launches
Minor price
increases
Ensuring timely
product launches
Focus on fast
growing chronic
therapies
Acquisitions
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.
Major route of Eliminating Competition
1996
ACQUISITIONS AND JOINT VENTURES
Caraco was the first international acquisition
1997
1998• Purchased basket of products
1999
2000
2004
2005
2008
2009
20102011
2014
2012
CHRONIC(SUPER CORE MODEL)
ACUTE(CORE MODEL)
POSITIONING
POSITIONINGPOSITIONING
POSITIONING
MAJOR BRANDS
PANTOCID
SUSTEN AZTOR
GEMER
REPACEGLUCOREDSTROCIT
CLOPILET AND
CARDIVAS.
FDCs•PantoprazolePANTOCID
•Clarithromycin•PantoprazolePANTOCID HP•Domeperidone•Pantoprazole
PANTOCID D
STRENGTH•LOSARTANREPACE 100 , 50 &
25MG
•LOSARTAN•AMLODIPINE
REPACE A 25MG•LOSARTAN•AMLODIPINE
REPACE AF 50 MG
MARKET SHARE
R&D
The company has incurred `2.05 bn in Q1FY’14 as R&D expense.
Spends 6% of its revenues on R&D
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.
5BLN$
THANK YOU