Sun Pharma to pursue M&A, licensing to expand speciality business
Sun Pharma, India's largest drug maker, will pursue licensing and acquisitions to expand its speciality business, the company's senior executive said.
«M&A — we have always tried to be very judicious; looked at ways by which we can use licensing or acquisitions as a way to fill the gaps in our portfolio and achieve our strategic goal,» said Abhay Gandhi, CEO-North America Business at Sun Pharma.
«Of course, having a cash chest of close to $2.4 billion inclusive of Taro enables us to pursue mid- to large-size transactions as well,» Gandhi said.
He added in the past few years Sun Pharma has been making conscious efforts to develop a pipeline of products in-house and «going ahead, it will be a combination of both (M&A and inhouse development)».
As of March 31, Sun Pharma at the consolidated level has net cash of $2.4 billion, of which Taro Pharmaceutical Industries' cash is $1.3 billion with zero debt.
The imminent delisting and merger of Taro with Sun Pharma will enable the Mumbai-based drug maker to utilise Taro's cash to further business growth.
Sun Pharma owns 78.48% of the NYSE-listed Taro. Sun Pharma decided to acquire the remaining 21.52% stake for Rs 2,891.7 crore.
Speciality drugs are medications that provide targeted therapy for severe, chronic, and rare diseases and are often built on innovation like new delivery formulations such as patches, inhalers, and topicals or a novel combination or new disease indications or better safety profile, so they get some protection by patents and are also complex
