Sun Pharma scouts for supply tie-ups in Europe

KOLKATA: Mumbai-based Sun Pharma is about to give its bulk drug business a shot in the arm — it’s scouting for tie-ups in Europe to supply a range of Active Pharmaceutical Ingredients (APIs). The company expects export revenues from the API business to rise from 4% of turnover to 8-9% in two years.

Elaborating on its API business plans, Sun Pharma’s CMD Dilip Shanghvi said the company is looking for product-specific alliances in Europe. “We will obtain registration of the APIs and supply them to our partners in Europe who will sell the final formulations on their respective labels,” Mr Shanghvi said.

The company’s API strategy for Europe is supported by its recent acquisition of a raw material and dosage manufacturing unit in Hungary from US-based Valeant Pharmaceuticals. Incidentally, the Hungarian unit is one of the few units worldwide with capability and authorisation to manufacture controlled substances (narcotics and psychotropic drugs).

“There is immense potential in the European API market which we want to tap to become a truly international company. The acquisition has also facilitated our entry into the controlled substance space across various dosage forms,” said Mr Shanghvi.

While Sun Pharma’s revenues in the US grew 21% last year, its revenue growth in other international markets stood at 8%. The company now plans to increase the share of international revenue from 40%

to 50% of turnover in two years’ time. Towards this, the company plans to enter the Japanese generic market, too.
Sun Pharma is currently finalising the entry strategy for the Japan market. “We may go for a tie-up with a Japanese company. The Japanese generic market is going through a phase of transition and the share of generics is expected to rise from the present 15% of the drug market,” the CMD said.

Sun Pharma is also in the process of filing 30 ANDAs for the US generic market, with another 50 products pending approval from the US FDA.