Curious about Sun Pharmaceutical net worth in 2024? Let’s take a closer look at how R&D investments and key revenue drivers contribute to Sun Pharma’s financial success.
At Ando Money, I provide the latest insights to help you understand the financial situation of one of the world’s leading pharmaceutical companies.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Sun Pharmaceutical Industries Limited |
| Full Name | Sun Pharmaceutical Industries Limited |
| Website | www.sunpharma.com |
| Industry | Pharmaceuticals |
| Traded as | NSE: SUNPHARMA, BSE: 524715 |
| ISIN | N/A |
| Founded | 1983 |
| Founders | Dilip Shanghvi |
| Country/Territory | India |
| Headquarters | Mumbai, India |
| Chief Executive Officer | Dilip Shanghvi |
| Number of Employees | 24,767 |
| Market Cap | $54.21 billion USD (as of October 2024) |
| Total Assets | $10 billion (2024) |
| Total Equity | $8.0 billion (2024) |
| Revenue | ₹125,245 million ($1.50 billion USD) |
| Net Income | ₹28,356 million ($341.34 million USD) |
What is the Net Worth/Market Cap Of Sun Pharmaceutical in 2024?
As of October 2024, Sun Pharmaceutical Industries Limited holds a market cap of $54.21 billion USD, making it one of the largest pharmaceutical companies globally.
Its market cap positions it among the top companies in the pharmaceutical industry, comparable to giants like Pfizer and Novartis.
While Sun Pharma’s financial position is impressive, several other companies in the industry also boast significant valuations.
Here are some of the key companies related to Sun Pharmaceutical’s field:
- Pfizer
- Novartis
- Taro Pharmaceuticals
- Ranbaxy
- Dr. Reddy’s Laboratories
- Cipla
- Lupin
- Abbott Laboratories
- Glenmark Pharmaceuticals
When exploring the biggest companies by market value, Sun Pharmaceutical stands strong within the pharmaceutical sector.
Learn more about companies with significant valuations by checking out this informative list of the wealthiest corporations.
Sun Pharmaceutical Financial Performance Overview
Revenue Breakdown by Geographic Regions
Sun Pharma‘s financial performance is driven by several regions, with India and the United States leading the charge.
India Formulations brought in ₹41,445 million (approximately $500 million USD), growing by 16.4%.
This segment accounted for about 33.1% of total sales. Meanwhile, US Formulations contributed $466 million USD, making up 31.1% of the company’s total revenue. However, US sales dipped by 1% compared to last year.
Other notable regions include Emerging Markets, which generated $284 million USD, marking a growth of 8.8%.
Additionally, the Rest of World (ROW) market contributed $190 million USD, though this segment saw a decline of 2.9%.
Impact of R&D Investments on Financial Growth
Research and development have played a significant role in Sun Pharma’s growth.
In Q1FY25, the company invested ₹7,940 million ($95.6 million USD) into R&D, reflecting an increase over the previous year.
This investment supports the development of new specialty drugs and generics, helping Sun Pharma maintain a strong product pipeline.
One major breakthrough in 2024 was the FDA approval of LEQSELVI (deuruxolitinib), a treatment for severe alopecia areata.
The company also filed for the approval of Nidlegy in Europe, aimed at treating skin cancers. These efforts highlight Sun Pharma’s commitment to innovation.
Major Revenue Drivers in Key Product Segments
Specialty drugs, including LEQSELVI and Ilumya (used for psoriatic arthritis), continue to boost Sun Pharma’s revenue.
The company’s specialty segment accounted for 17.7% of overall sales, demonstrating strong demand for innovative treatments in dermatology and oncology.
Generic drugs, a key pillar of Sun Pharma’s portfolio, also contributed significantly.
With 537 approved ANDAs (Abbreviated New Drug Applications) and more than 100 ANDAs awaiting approval, Sun Pharma maintains a competitive edge in generics.
The US Generics segment alone contributed $466 million USD to revenue.
Financial Impact of Recent Acquisitions and Partnerships
In 2024, Sun Pharma made strategic moves to bolster its financial standing, including the acquisition of the remaining shares of Taro Pharmaceuticals for $347.7 million USD.
This acquisition is expected to contribute to future growth by expanding the company’s reach in the dermatology and specialty markets.
The company has also focused on strengthening partnerships, particularly in Europe and Asia, helping expand its product offerings and market penetration.
Trends in Sun Pharma’s Operational Costs and Margins
In terms of operational costs, Sun Pharma has faced fluctuating material costs and changes in inventory.
Despite these challenges, the company reported a strong EBITDA margin of 28.5% in Q1FY25, up from 27.9% the previous year. Employee benefits and other expenses remained steady, helping Sun Pharma maintain profitability.
The cost of materials consumed totaled ₹9,732.3 million ($117 million USD), while employee benefits reached ₹6,454.8 million ($77.7 million USD). These figures demonstrate Sun Pharma’s efficient operational management.
Effect of Exchange Rates and External Market Factors on Revenue
Like many global companies, Sun Pharma has been impacted by fluctuating exchange rates. With sales in over 100 countries, exchange rates have played a crucial role in determining revenue.
The company’s exposure to different currencies, including the Indian Rupee and the US Dollar, has resulted in some volatility, though it continues to manage risks effectively.
In particular, US Formulations were slightly affected by exchange rate shifts, leading to a 1% decline in sales.
Sun Pharma’s Financial Forecast and Future Growth Opportunities
Looking ahead, Sun Pharma is well-positioned for growth.
With an active pipeline of new specialty drugs, including several in the dermatology and oncology sectors, the company is set to expand its market presence.
Additionally, Sun Pharma’s ongoing investment in R&D will likely result in new product launches, contributing to revenue growth.
Expansion in emerging markets and efforts to secure new regulatory approvals in Europe further support a positive financial outlook.
FAQs About Sun Pharmaceutical
What is Sun Pharma’s main revenue driver?
Its primary revenue comes from India Formulations and US Generics, alongside its growing specialty drugs portfolio, particularly in dermatology and oncology.
How much did Sun Pharma invest in R&D in 2024?
In Q1FY25, Sun Pharma invested ₹7,940 million ($95.6 million USD) in research and development, focusing on specialty drugs and generics.
What was the financial impact of acquiring Taro Pharmaceuticals?
It acquired the remaining shares of Taro Pharmaceuticals for $347.7 million USD in 2024, expanding its footprint in specialty pharmaceuticals.
How has Sun Pharma performed in emerging markets?
In Q1FY25, the company reported sales of $284 million USD in emerging markets, growing by 8.8% compared to the previous year.
What is the EBITDA margin of Sun Pharma?
As of Q1FY25, its EBITDA margin was 28.5%, reflecting a slight improvement from the previous year.
Conclusion
Sun Pharma’s financial performance in 2024 showcases impressive growth, driven by key regions and R&D investments.
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