Connect with us

Company News

Sun Pharma Sharpens R&D for Efficiencies with Digital Applications

Sun Pharma is adopting digital solutions in research and development for efficiencies as pricing pressure continues to hurt US business. The drug maker has guided for an increase in R&D expenses in FY19 as it builds a pipeline of specialty products. Expenses will also see an increase this year as it plans three key launches in US, including its psoriasis drug (Ilumya), eye drops (OTX-101) and anti-cancer drug (Yonsa). This would require upfront investments to build up a field force and this will put pressure on margins. “We are building a digital collaborative platform that will help in improving R&D productivity,” said a Sun Pharma spokesperson.

While Indian drug makers have armed medical representatives with mobile apps and tablets, the use of digital tools to gain customer insight, disease management or R&D is limited. According to a 2017 study by consultancy EY, less than ten per cent of Indian pharmaceutical companies have a comprehensive digital strategy in place and Sun Pharma could be among the first companies to use digital tools for R&D. “The project is still in the process of being implemented,” the spokesperson added without giving further details. Deloitte which is working with Sun Pharma on the digital collaboration platform did not respond to a query. “R&D expenses in FY 19 will increase (around 8-9 percent of FY19 sales) due to clinical trials for a new indication of Ilumya and other specialty product development. On the generics side we are critically evaluating many projects considering the changed business dynamics in US and will be rationalizing our generic R&D spend,” Sun Pharma said.

Rationalizing R&D expenses along with cost control measures and selling high margin products are among the company’s strategy to protect its margins. Sun Pharma’s stock has gained 16.7 percent from start of this month on the back of low double-digit sales growth guidance and resolution of regulatory compliance issues at its Halol plant. On a year to date basis the stock has declined 1.9 percent while the BSE Healthcare Index is down 3.9 percent. The Halol plant, a key facility for the drug maker, has been under the regulatory scanner since September 2014. It was served a warning letter by US Food and Drug Administration in December 2015. The company is also working to resolve the regulatory issues at three of its plants which have an import alert from FDA and has begun filing products from Mohali plant which was cleared by the regulator last March.

“The Mohali facility continues to file products for the US market and it will be a gradual ramp up. In terms of status of other plants work is ongoing as per the requirements of the consent decree. We can’t share any timelines,” Sun Pharma said. Sun Pharma acquired the Mohali plant as part of its USD 4.1-billion purchase of Ranbaxy in 2015. Two other erstwhile Ranbaxy plants at Paonta Sahib in Himachal Pradesh and Dewas in Madhya Pradesh remain under an FDA import alert issued in 2008, while a third plant at Toansa in Punjab was banned in 2014. – Business Standard

Copyright © 2024 Medical Buyer

error: Content is protected !!