But few have tried out the strategy of acquisition abroad as successfully as Sun Pharma, with a ready market and manufacturing base. A modest domestic background to start with, Sun Pharma now finds itself in the top league and derives nearly half of its sales from global operations. Unlike its peers, the company is sticking to its niche segment.
Not the one to rest on its laurels, the drug major announced the acquisition of Dusa Pharmaceuticals, a Nasdaq listed company, with a focus on specialty dermatological treatment, while announcing its September earnings report. With not many competitors around, the US accounts for a big chunk of its sales pie.
Thanks to the Taro takeover earlier, Sun Pharma already has a strong presence in the dermatology segment not just in the US, but other parts of the world. The upside is the company is set to leverage on the strength of these two buyouts.
Turning it on, the drug major is aggressively lining up new product launches in the US. With regulatory issues regarding its earlier US acquisition of Caraco sorted out and resumption of manufacturing at its Michigan facility, Sun Pharma will be pocketing a higher share of sales from the US.
Sun Pharma’s stock price recently has got to a new all-time high of Rs728.95 and corrected to Rs680 level. Given the strong tailwinds working in its favour, the pharma company is all set to soar to new highs as benefits from the US start trickling in.