We continue to increase our reach and access in India, say Sun Pharma execs

Senior Sun Pharma executives speak on a two-pronged strategy for the China market, beginning R&D of biosimilar products, and more

After posting a 43 per cent rise in Q1 profit after tax (PAT) and 29 per cent jump in sales of specialty products, Sun Pharma is now eyeing to commercialise its specialty products basket in countries outside the US. Speaking to Sohini Das, Sun Pharmaceutical Industries chief financial officer (CFO) C S Muralidharan and chief executive officer (CEO), India business, Kirti Ganorkar, talk about future plans and the incremental innovation in products that they plan to bring to India. Edited excerpts: 

Some of your specialty products like Ilumya and Absorica are now likely to face competition. How are you planning ahead for your specialty business to ensure sustainable growth?

Muralidharan: If you see our overall specialty business revenues contributing to our consolidated turnover — it has grown consistently from 7 per cent in 2018 to 13 per cent in the current quarter. During the current quarter (Q1 of FY23), specialty sales were about $191 million, a growth of 29 per cent year-on-year (YoY). The specialty ramp up is driven by the improved prescriptions. We understand that Ilumya, among others, are facing stiff competition from other companies, but it has performed very well. We expect it to continue performing very well going by the past trends. Take the example of Absorica, which saw generic entry after April, where the sales continued to remain robust. We expect to see growth from newer markets apart from the US where we can also leverage the opportunities for our key specialty products.

Ganorkar: Psoriatic arthritis is another indication we are pursuing for Ilumya. The number of rheumatologists is less, and thus we will not need a separate sales force for this new indication. Right now, Ilumya is prescribed by dermatologists. Among other markets for our specialty products, we are keen on the EU and Japan.

You have four specialty molecules in clinical trials. When can we expect to see the launches?

Ganorkar: The phase 3 trials usually take longer, as there are more patients. We need to do phase 3 trials and then there are approval timelines that can take one-two years after filing the ANDA (abbreviated new drug application), depending on the country.

In the next five years, biologics worth $70 billion are going off patent. How is Sun Pharma planning to tap this opportunity?

Ganorkar: We are already beginning R&D for some of the biosimilar products, which are called the ‘third wave’. We are in the process of identifying more products.

Muralidharan: We have not disclosed the number of products we have identified.

Are you thinking of rationalising your US spend and focus more on other markets?

Muralidharan: We are not thinking of rationalising the US market spend. There are no internal plans around that. Now, we have launched Winlevi. Therefore, there would be initial launch and other expenses. When products become mature (six or seven years after launch), the spend becomes even. But in the initial two or three years, there will be incremental spend.

Can you give an update about your China plans?

Muralidharan: We have a two-pronged strategy for the China market — one for specialty products and another for generics. We have already disclosed our licensing agreement with China Medical Systems (CMS) for our specialty products. These products will be commercialised by CMS in China after the regulatory approvals. We also have eight generic products that CMS will commercialise as a part of a separate licensing agreement. In addition, we also have a licensing agreement for oncology infusions in the China market.

The Halol site has 19 ANDAs, but no site transfers have been initiated. Why is it so? How has the contribution of Halol decreased over the years in your overall turnover?

Muralidharan: As the contribution of specialty revenues to our overall global revenues keeps increasing, the contribution of Halol to our consolidated revenues keeps on decreasing. Further, we have no plans to transfer any of our products to alternative sites at this point of time. The inspection by the FDA is completed; we have done remedial measures and have also reported back to the FDA. We are now waiting for the EIR (establishment inspection report) to come through.

What do you have to say about the one-molecule-one-MRP policy that is being discussed now?

Ganorkar: It is too early to comment. We don’t know how this will be implemented and how one will maintain quality across products and companies.

How are you planning to control the rising input costs?

Muralidharan: There has been a rise in input costs in the recent months, and the geopolitical tensions have also contributed to this. We are trying to pass on any permanent increase in input cost to the customer to the extent possible. However, this is not possible at all times. Internally, we continue to strive to reduce costs and make operations more efficient.

Do you have any plans for further research or licensing Covid products?

Ganorkar: Whenever there is an opportunity, we licence the product like we did from Merck or Pfizer. If any such opportunity comes up in the future, we will evaluate, but we are not focusing on Covid. 

What is the strategy for future growth in India where you are already a market leader?

Ganorkar: We are expanding the field force for geographical expansion and brand focus. We continue to increase our reach and access. We are also continuing to focus on increasing our share in the specific therapy areas. We are adding 1,000 people this year. Rising per capita income, chronic ailments provide opportunities for growth of pharma, along with rising medical insurance. Our objective is growing faster than the market. We don’t want to get into the hinterland. We are trying to grow our presence in markets where we are there. We are focusing on complete coverage of therapies. For India, we are also trying to bring in differentiated products.