Sun Pharma Advanced Research Company Limited (SPARC) is engaged in research and experimental development on natural sciences and engineering which is also known as ‘Pharmacy’. Thus, the company operates in the Pharmaceuticals Research & Development segment. SPARC was formed in 2007 as a result of a demerger from Sun Pharmaceutical Industries Limited which is a global leader in specialty generics. The company strives to build an enduring innovation engine built on strong scientific execution, high value analytics and aggressive portfolio management.
Global spending on medicines is expected to grow at a compounded annual growth rate (CAGR) of 3-6 per cent in the coming five years which will reach over US $1.5 trillion by 2023. Due to the economic slowdown, all developed markets show moderation in growth. Overall, the spending of pharma and biotech companies on R&D is expected to be US $177 billion by the end of 2019 compared to about US $171 billion in 2018. For 2019, the global pharma industry’s R&D pipeline is expected to be around 16,181 drugs with a growth of 6 per cent as compared to a growth of a mere 2.7 per cent in the previous year.
The US is a key market for Indian pharmaceutical companies. Pricing is a challenge that most Indian companies face in the US market as the launch prices are kept in focus and newly introduced drugs in the specialty segment are often costlier. Thus, Indian pharmaceutical companies have increased investments in R&D in the recent years. Indian pharmaceutical companies are undergoing a gradual shift in their approach to shift from a classical, generic drug manufacturer to a research driven innovative firm. Global pharmaceutical companies have hence also shown interest in establishing operations in India for R&D, manufacturing and distribution through captive operations or collaborations. This has led to a rise in collaborations of Indian and global pharmaceutical companies.
While many established pharmaceutical companies which have been witnessing declining cash-flows, healthy and steady revenue and profitability growths are still a challenge for them. But on the other hand, most of the research-based pharmaceutical companies have been reporting an uptick in revenue and profits. This is largely due to the revenue generated by research companies by licensing their innovative products and novel technologies to large companies for commercialization.
KEY PRODUCTS SPARC’s
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November 25 - December 8, 2019