JOIN USAfter successfully completing the merger of Ranbaxy with the company, Sun Pharma is now planning to invest more in research & development (R&D) and try and sort out all issues with the regulators to look at faster growth across markets.
“Right now, both the companies spend around $250 million seperately in R&D activities. As a combined entity, we will be investing $300 million in R&D during this year which will be scaled up to $500 million in coming years,” Sun Pharma managing director Dilip Shanghvi said.
We have had some problems with the regulators and now we are committed to ensure that we win back the confidence of regulators, Shanghvi added.
The combined turnover of both the companies put together was at $4.5 billion in the previous year and the merger would create the fifth largest pharmaceutical company in the world. Shanghvi also said that the company would not be looking at any job cuts and eyeing increased market share in the United States.
“We are not looking at restructuring our workforce in any ways. We are, however, looking at a way to utilise all the current talent,” Shanghvi said.
In US, we will look at bringing back some products and strengthen our branded business with new product offerings. We have 5 markets among emerging markets business with sales of close to $10 million and we will try and increase the market share in these geographies, Shanghvi added.
As far as his recent investments are concerned, Shanghvi said that he has no plans to run the businesses in which he has invested.
“Every investment I have made outside of Sun is financial, I have no interest in running those businesses,” Shanghvi said. Shanghvi had recently invested $290 million for a 23 per cent stake in Tulsi Tanti-owned wind turbine maker Suzlon Energy.