Sun Pharma was started as a partnership
venture managed by the Dilip Sanghvi and his family. It started as manufacturer
of pharmaceutical formulations. Its operations started at Vapi in the state of
Gujarat. The company became a public company in the year 1983. Since then the
company has crossed several milestones to reach where it stands today. The
company deals with segments related to Cardiology, Neurology, Psychiatry, and
Gastroenterology.
I have briefly stated below the important
events in the history of this company.
In the year 1994 two plants were commissioned
one at Panoli and another at Silvana, to augment the production of bulk drugs.In the year the company acquired the
manufacturing unit of Knoll Pharmaceuticals Ltd in Ahmednagar. This year two
important drugs - Clofranil SR and Syndopa CR were introduced to the market. In the year 1996 sun Pharma brought out more
new products. In this year a controlling stake also acquired in MJ
Pharmaceuticals Ltd.
1997
was an important year for sun Pharma. In this year the Chennai based Tamil Nadu
Dadha Pharmaceuticals Co. Ltd was merged with Sun Pharma. Tamil Nadu Dadha
Pharmaceuticals which was popularly known as TDPL had extensive product range
in the segments of gynecology, fertility, oncology, pain relievers and many
more.
Sunkalp Laboratories Ltd., Sun Pharma
Industries Ltd., Russia & Sun Pharma
Global Inc. became subsidiary companies of Sun Pharma.This
year also saw the expanding manufacturing facilities in Dadra and Nagar Haveli.
In the year 1998 the company launched new
products related to glucose metabolism, cholesterol control and Cardivas. The
company also launched drugs in managing inflammation, gastrointestinal
problems, endocrine disorders.
In 2000 Sun Pharma Exports was merged with
the parent company. In this year the company launched more products and
expanded its range of products.In 2001
a merger was reported with Pradeep Drug Company Ltd. In this year the company
merged Sun Pharmaceutical Advanced research Centre which it created way back.
In this year also new products were launched
in the segment of cardiology, diabetology. Edegra - the Sun Pharma’s answer to
Viagra was also launched in this year.
Probably the year 2002 must have been the
most important year for the company when it received approval from US Food and
Drug Authority for Metformin Hydrochloride. This is widely used to treat
diabetes. The approval was awarded to Caraco Pharmaceutical Laboratories, an associate
of Sun Pharmaceuticals.
Another
– Digoxin ( a generic product) won the
approval from the US Food and Drug
Administration (US FDA) to manufacture and marketing in the USA. This is
another feather added in the cap of Sun Pharmaceuticals.
In the year 2004 increased its stake from 44%
to 60% in Caraco. Later in 2007 this stake was increased to 75%.another
significant event happened around this year was the commissioning of the unit
in Bangladesh.
Phlox
Pharma a company that manufactures a Cephalosporin Actives was acquired by the
company. In the year 2005 the company bought a plant form Valeant Pharma in
Ohio, USA. Also this year the company acquired Able Labs in New Jersey.
At this
point it is noteworthy that the company was selected by Forbes to be among the
best 200 companies in Asian region for the fourth consecutive time
The year
2007 was also eventful for the company when it acquired Taro Pharmaceutical
Industries Ltd. Taro had presence in U.S.A., Canada, and Israel.
In 2008,
the company acquired Chattem Chemicals - an approved facility in Tennessee.
The dividend history of the company has been consistent
and good indicating its health. The last
five years dividend from the year 2008 till 2013 climbed from 210% in 2008, 275%
in 2009 & 2010,350% in 2011, 425% in 2012 and 500% in 2013. The current
face value of the stock is Rs.1.
According
to the latest available data from the company the profit after tax stands at 5,903 Crores.
At the time of wrting this notes the company’s shares were
trading at Rs.980. Investors with a long term prospective can consider adding
this stock to their portfolio.
Link to my post on Sun Pharmaceutical Industries
Link to my post on Sun Pharmaceutical Industries
