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P.T. Jyothi Datta

Mumbai , Oct 5

THE Mumbai-based Sun Pharmaceutical Industries Ltd plans to train its guns on the US generic drugs market.

But international growth will not be at the expense of the local market, according to Mr Dilip Sanghvi, Chairman and Managing Director.

Mr Sanghvi shared his company's plans for the US and European market, following Sun's recent acquisitions in both these regions.

And this, even as he responded to the perception that Indian drug companies court international markets at the expense of local needs.

"For Sun Pharma, the domestic market continues to be an important component of our overall business. So, even though we wish to become more international than what we are, we still treat India as a critical part of our future."

Currently, domestic sales account for about 60 per cent of the company's revenue. Sun Pharma expects to grow by 15-20 per cent in the current year.

And its international business in the next 18-24 months is expected to grow to 50 per cent of total sales.

Organic growth: Domestic growth, however, will be organic and on the back of existing products.

"Hindustan Antibiotics Ltd was a specific investment with a specific objective. We are not currently looking at any domestic acquisition," he said.

Sun Pharma was interested in picking up Hindsutan Antibiotics, but the plan was finally shelved around the same time last year.

US acquisition plan: The company, which has expressed plans for a major acquisition in the US, currently sits on about $350 million.

"Our plan is to become an important player in the US. When, how, and how much time it will take is a function of our execution, should we do an acquisition," he said. High valuations are holding back these plans, he added.

Recently, Sun Pharma acquired two facilities from Valeant Pharmaceuticals in the US and in Hungary.

Sun already has a production base in the US through Caraco, in which it holds 72 per cent equity.

"We will continue to invest in the US. Even the Hungarian investment from our point of view is to develop a more significant US presence. So, it is not for Europe, because it has a USFDA approved bulk manufacturing facility and a formulation plant that is approvable."

European plan: Meanwhile, in Europe, plans are afoot to file products in Europe and also to market them through collaborations with a European partner.

"It will be a pharmaceutical company, depending on which product who can market most effectively. So, we will have a product specific alliance," he said, unwilling to divulge details.

The scope of the alliance would be for markets in Germany, France, and the UK.

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