Aim to gain market share, preserve cash, reduce overall debt in times of COVID-19: Dilip Shanghvi

In an analyst call, Dilip Shanghvi, MD, Sun Pharma informed, “Our endeavour will be to gain market share in each of our business by doing better. Despite the near-term uncertainties related to COVID-19, we hope to be able to do better consistently.”

Shanghvi said that the company is also looking at supply chain protection, ensuring optimum utilisation of its factories and working closely with vendors to ensure continuity of supply while at the same time continuing focus on improving productivity throughout.

In times of COVID-19, the company is also focussing on cash preservation and finding a way to reduce the overall debt for the company, Shanghvi said.

“You will see that the total borrowings have come down by almost $400-plus million (about Rs 3,000 crore) in one year. And we will continue the same focus reducing the overall debt,” he said.

Speaking on the domestic business and expansion plans, Kirti Ganorkar, Head (India Business), Sun Pharma apprised that the company is in the process of expanding its field force to enhance its reach.

“We want to expand (field force) by 10 per cent. Out of that, seven per cent to eight per cent we have already achieved so that we cover a large number of doctors and we cover some of the territories, which we have not covered,” he noted.

At the same time, the company also wants to build new brands and turn its existing brands into mega brands, Ganorkar said.

“We want to introduce new products ahead of the competition. And we want to make products available in the supply chain. So looking at all these factors, long-term will help us to increase our market share,” he added.

Things were going in the right direction, but COVID-19 pandemic has put a new challenge for the company, he said.

Abhay Gandhi, CEO (North America Business), Sun Pharma gave details about the company’s US generics business and said that it has a pipeline of 98 ANDAs and five NDAs.

“So the pipeline is strong. On pricing, we still see pressure on pricing, and we don’t see that abating in the near term or even in the mid-term if I say so. So we keep hoping, but I haven’t seen that happening,” he noted.

On a question related to Japanese business, Shanghvi said the company continues to look at opportunities to invest in the country.

“The first priority and focus for us, of course, would be to launch Ilumya once it is approved in Japan and for which we would be creating a significant organisational capability,” he said.

Besides, the company will continue to look at attractive opportunities, where it can leverage effectively existing presence and look at the opportunity to grow the business, Shanghvi added.

Sun Pharma has a presence in around 150 countries and caters to segments like psychiatry, anti-infectives, neurology, cardiology, oncology etc.

(With edits, changes in the headline by EP News Bureau)