Dilip Shanghvi, chairman and managing director, Sun Pharma, said Taro’s performance will improve gradually and through Taro, Sun would get into businesses in which it is currently not present.
Sun Pharmaceuticals says it will leverage Israeli firm Taro Pharmaceuticals product pipeline to scale up its presence in international markets.
Dilip Shanghvi, chairman and managing director, Sun Pharma, said Taro’s performance will improve gradually and through Taro, Sun would get into businesses in which it is currently not present.
“We will get into those areas where we currently don’t have sufficient capacity through Taro and leverage these products in markets where Taro does not have a presence,” said Shanghvi, in a conference call.
Sun currently holds 53% in Taro. It has been in the process of acquiring control over Taro since May 2008, a year after Sun’s offer for taking control of Taro for $454 million was terminated by Taro promoters.
Taro’s expertise lies in therapeutic areas such as dermatology and paediatrics, while for Sun its areas like psychiatry, cardio vascular diseases, neurology, diabetes, gastroenterology and orthopaedics.
Taro currently has about 150 ANDAs (abbreviated new drug applications, needed for marketing generic drugs in the US), of which about
120, mainly for dermatology and paediatrics, have received approvals.
“Through Taro, Sun will try to gain a significant presence in dermatology and paediatrics in the US market, while simultaneously taking products from these two categories to markets in emerging economies such as Brazil,
Mexico, Peru, Africa, Southeast Asia, where Sun has entered in the recent past,” said a research analyst from a brokerage house in Mumbai.
Bhavin Shah, analyst, Dolat Capital Market, said Sun will leverage its distribution network in emerging markets where it has a presence and supply Taro’s products there.
“This is a good strategy for Sun to strengthen its presence in emerging markets with derma and paediatric products.”
Shanghvi said Sun would look at making incremental investment year after year in Taro’s facilities in Canada and Israel to take care of increasing demand.
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