Sun Pharma intends to Spend 7-8 Percent of Sales on R&D this Fiscal Year

According to a senior corporate official, Sun Pharmaceutical Industries Ltd plans to invest 7-8% of its current fiscal year's sales on research and development efforts in order to significantly expand its product range across therapeutic areas. Managing Director Dilip Shanghvi told shareholders at the Annual General Meeting (AGM) that the company achieved well in all of its geographies last fiscal year, registering double-digit growth.

"Our R&D spending is expected to be 7-8 percent of sales in 2023-24, with an increasing share of spending in specialty (drug segment) R&D," Shanghvi said. In FY23, the Mumbai-based pharmaceutical company achieved global consolidated revenue of Rs 433 billion. The Mumbai-based pharmaceutical company spent over Rs 2,400 crore on R&D in 2022-23, accounting for approximately 5.5 percent of sales as it continued to invest in its product pipeline for both global generics and specialty businesses. Shanghvi stated that the expansion of its global specialist business will continue.

"All of our businesses are well-positioned, and we expect high-single-digit consolidated topline growth for FY24," he added. The company's focus remains on increasing manufacturing efficiencies and lowering expenses. "At the end of the year, Sun Pharma had a strong net cash position of approximately USD 1.5 billion," he said. According to Shanghvi, the domestic pharmaceutical market would be worth USD 35-39 billion by 2027, with a compounded annual growth rate of 7.5-10.5 percent. Demographic and lifestyle changes, rising per capita income, an increase in the prevalence of chronic diseases, more access to sophisticated medicines, and improved health insurance coverage would all be significant drivers of this expansion, he noted.