management accounting ma i

7/21/2019 Management Accounting MA I

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Financial Analysis with a focus on pro tability for the 3 pharmaceuticalCompanies – Sun Pharmaceuticals, Lupin and Dr !eddy"s Labs



Pharmaceutical Sector – an Overview

pharmaceutical sector is the 3 rd lar$est by %alue and &' th lar$est by %olume w

fra$mented with Lar$e number of unor$anised and or$ani)ed players

pharma industry is the mar*et leader in $eneric pharmaceticals and bul* dru$

arma sector is a preferred destination for in FD# and F## #n%estments e port oriented - Around .'/ of the total pharmaceutical produce is e ported

butes / to the 0DP of #ndia

is pro1ected to $row at a CA0! of &2-& / upto 4'4'

Pharmaceutical companies can be di%ided by their business model into, AP#acturers, $eneric dru$ manufacturers, etc etc,

depreciation was one important aspect which helped the industryally those companies who had not hed$ed their recei%ables

ry 0rowth Dri%ers 6

owth in income le%el7a8ordability9,owth in medical infrastructure



Company Overview

op 3 companies by mar*et standin$ 7mar*et capitali)ation in #ndia9

n Pharma

pin

!eddy"s Labs



LupinMarket Cap: )+!+ "#,% crSales &'(1)*: %!-$-#$% cr

Founded in &> H, head?uartered in 5umbai, it is the se%enth-lar$est companymar*et capitali)ationIand the &'th-lar$est $eneric pharmaceutical company b

A leadin$ #ndian $eneric e porter

A $lobal leader in anti-tuberculosis 7+B9 and other infectious diseases, Lupin is$rowin$ prescription companies in the =S,

0lobal 5 A – #t has ac?uired companies in Japan 7si$ni cant ac?uisitions9, Ausand South Africa #t has ac?uired lucrati%e brands in the =S

#nfrastructure-&& manufacturin$ facilities includin$ two in Japan –

Gey businesses 6

Pipeline 6

!e%enue Brea*up 6 =SA 7K.'/9, followed by #ndia, Japan, etc



eddy La0oratories & S – .// ..( *et Cap: +1!"+%#"+ Cr

s &'(1)*: 1$!$)-#1, cr

lished in &>H., Dr !eddy"s Laboratories 7D!L9 is one of #ndia"s pedi$reed playen$ a rm footin$ in the =S

ompany owns 44 manufacturin$ facilities and four de%elopin$ centres across t

is one of the few #ndian companies to foray into new dru$ disco%ery de%elop

s 5anufacturin$ and Sales 5ar*etin$ perations span around 4' countries

Businesses 6 three core businesses 0lobal 0enerics7comprise / of re%enuemaceutical Ser%ices74&/9and Acti%e #n$redients 7PSA#9 and Proprietary Productis also the rst #ndian company to out-license molecules to bi$ pharma compan

spends around -H/ of turno%er yearly on ! D, this is li*ely to $row to &'-&&/

nue Share 6 :orth America 7. /9, #ndia7&2/9, !ussia7&2/9, ;urope

Acti%ity 6

ine 6



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'uture Outlook 4 /ecommendations

armaceuticals #ndustry is pro1ected to $row to =SD 22 billion by 4'4' dri%en base in a8ordability and increased mar*et access

ies and +ier & mar*ets will dri%e $rowth while rural mar*ets will increase its sha

dian mar*et scales up in si)e and di%ersity, opportunities li*e patented product

ealthcare, biolo$ics, %accines and public health are emer$in$ with $reat future

i8 – patent protection e pirin$ in 4'&2-& , openin$ up opportunities for the #ndierics

ar*ets especially in the =S would dri%e $rowth in the immediate future – depred aid the e port dependent pharma sector"s mar$ins $reatly

%ernment of #ndia has pre%iously un%eiled MPharma Nision 4'4'M aimed at ma*inder in end-to-end dru$ manufacture



mendations :

ment to follow throu$h in raisin$ its healthcare spendin$ to stated 3/ of 0DP

in (ealthcare infrastructure especially in +ier-## and rural mar*ets

e !SBO 7:ational (ealth #nsurance Pro$ramme9 as per the plan to pro%ideo%era$e to .'' plus million people

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