Sun Pharma, India’s largest pharmaceutical company, is set to pursue an aggressive strategy of mergers and acquisitions (M&A) and licensing to expand its specialty business. With a consolidated net cash reserve of $2.4 billion, including $1.3 billion from Taro Pharmaceutical Industries, the company is poised for significant transactions. The imminent delisting and merger of Taro with Sun Pharma will optimise its cash utilisation for growth. Speciality drugs, which are complex and garner better margins due to limited competition, make up a significant portion of Sun Pharma’s strategy. For example, they acquired Concert Pharma for Rs 4,600 crore, gaining rights to Deuruxolitinib, used for treating moderate to severe alopecia areata. Over the years, Sun Pharma’s global specialty business has shown robust growth, surpassing $1 billion in sales for FY24 with a 19% YoY growth. Specialty drugs contributed 18% of its revenue. The company aims to blend M&A with in-house development to achieve its strategic goals.

Pharmaceuticals, Health Care,India, United States

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