Summary
Sun Pharma is attempting to gain market share in the world largest market - the US market. Sun Pharma is clearly expanding it product base with venturing into topical (dermatological) and pediatric segments, and with vertical integration as with raw materials suppliers. Sequentially, I would see SunPharma to be a leader in the US market within this decade, unless other Indian manufacturers encroach in this market.
Analysis
Sun Pharma will gain significantly in the Dematological / topical and pediatric segments with the acquisition of Taro, that is currently being negotiated by the Israeli courts. Late 2008, it also acquired Chattem Chemicals, a leading provider of control substances bulk chemicals, effectively strengthening its vertical integration.
In this current market, these factors will particularly boost Sun Pharma's market share. The unfortunate development at this time that would adversely affect Sun Pharma's share would be the burgeoning increase of other very competitive Indian generic drug manufacturers, as Auro Bindo, Lupin and Wockhardt. In addition to them, several manufacturers are pushing multiple deals with wholesalers and large retailers where grouped discounts are provided on choosing other medications for their product lines.
Aemad A. Aslam
