Sun Pharmaceuticals inds. Ltd Buy Call: Abhishek Jain, StocksIdea.com

Sun Pharmaceuticals inds. LtdCompany Started its operation with just five psychiatry brands in the year 1983. Company has emerged as one of the leading pharmaceutical companies in India, and one of the largest Indian companies in the US generic market. In India Company is the largest specialty prescription company. In the US, it offers a comprehensive portfolio of generics including controlled substances and dermatologicals. Sun Pharma has presence in 40 other markets. In the US, Company has built a strong pipeline of generics, directly and through its subsidiaries Caraco and Sun Pharmaceutical Inc.

Taro adds strong dermatology range to this portfolio. Sun pharma used a combination of growth and acquisition to drive growth. It acquired Important companies i. e., detroit-based Caraco Parma Labs and a plant at Halol which now holds UKMHRA and USFDA approvals. The 2010 acquisition of Taro Pharmaceuticals doubled its US business and brings strengths in dermatology and pediatrics. Its subsidiaries companies includes - Caraco Pharmaceutical Laboratories, Sun Pharmaceutical Industries Inc., Sun Pharmaceutical (Bangladesh), Alkaloida Chemical Company Exclusive Group Ltd., Chattem Chemicals, Taro Pharmaceutical Industries Ltd., Its plants at Panoli and Ahmednagar address the regulated markets while the remaining sites manufacture for India and the developing nations. Ahmednagar site holds USFDA, European, OHSAS 18001 ISO 9002 and ISO 14001 approval. Panoli site is USFDA, Australian TGA and ISO 9002 approved. Both these plants are equipped with dedicated areas for the manufacture of complex API such as steroids, peptides, anticancer and sex hormones.

Many plants of the company hold approvals from the USFDA and the UK MHRA. APIs and Dosage forms are made at 20 plants across India, Israel, US, Canada, Hungary, Brazil, Mexico and Bangladesh. In India and rest of the world markets, its brands are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroe-nterology, diabetology etc. Sun pharma is market leader in speciality therapy areas in India. Formulation— its speciality product range includes solid oral dosage forms (tablets, capsules), injections, nasal sprays, aerosols, dry powder inhalers, ophthalmic preparations, creams and ointments as well as technically complex preparations like melt tabs, liposome based products, depot preparations and time release / controlled release preparations. The factories at Dadra, Jammu and Silvassa are equipped to manufacture solid oral finished dosages to international regulatory requirements. These facilities comply with cGMP, WHO standards and are approved by local FDA with excellent regulatory compliance records. Currently these plants meet requirements for the market in India, as well as select international markets.

Sun Pharmaceuticals is sitting on huge cash reserves of more than 2200 crores. This Cash reserves can be used for further acquisitions and expansion purposes. At current market price stock is trading at 18.76 P/E multiple of its FY2013 estimated earnings. We recommend investors to Strong Buy “Sun Pharmaceuticals Limited” with medium to long term investment horizon.