Financial Performance of Pharmaceutical Companies 147Central and decided to put up a first class modern pharmaceutical works and laboratory. Cipla has been
awarded the Chemexil Award in 1978–79 and 1981–82, the National Award for successful commercialization
of publicly funded R&D. More details of the company can be accessed at http://www.cipla.com.
India’s largest pharmaceutical company, Ranbaxy Laboratories Ltd, is a research based international
pharmaceutical company. Rated the 11th largest generic company worldwide, Ranbaxy exports its products
to over 70 countries with ground operations in 25 and manufacturing facilities in seven countries. It has emerged
as a leading pharmaceutical company in India with the third largest share of the domestic market. Ranbaxy
has a joint venture agreement with Eli Lilly & Co of the US, to market select Eli Lilly products. The company’s
GDR is listed in Luxembourgh Stock Exchange. It entered the US market in 1998 to market its products. In
1997 the company’s sales crossed the Rs 10 billion mark. More details of the company can be accessed at
http://www.ranbaxy.com.
Glaxo India is a 51 percent subsidiary of Glaxo-Wellcome of the UK. The no. 1 pharma company in terms
of market share, it has a market share of 4.2 percent in the prescription drugs and an overall market share of
7.2 percent. It was incorporated in 1924 as H.J. Foster & Co., which later became a wholly owned subsidiary
of Joseph Nathan & Co. in 1926. Initially Glaxo was established to sell processed baby foods. It sold off the
baby foods business to Heinz in 1994. Pharmaceuticals remain the main business of Glaxo India. Burroughs
Wellcome acquired the parent company of Glaxo India in 1995. Glaxo merged with SmithKline Beecham
Pharmaceuticals in 2001. The major chunk of revenues comes from formulations that constitute around
85 percent of the total sales with the rest coming from bulk drugs. Exhibit 7.2 presents the business mix of
Glaxo. More details about the company can be accessed at http://www.glaxowellcome.co.in.
Sun Pharmaceutical Industries manufactures and markets specialty medicines and active pharmaceutical
ingredients for chronic therapy areas such as cardiology, psychiatry, neurology, and gastroenterology. Sun
Pharma began operations in 1983, with just five products to treat psychiatry ailments. Sales were initially
limited to West Bengal and Bihar and later on expanded nation-wide in 1985. In 2001, ORG Retail Chemist
Audit ranked Sun Pharma among the top five pharma companies in India. The company established a research
center in 1993 and a bulk drugs plant in 1994. Sun Pharma has used a combination of organic growth and
acquisitions to drive growth; prominent among several mergers that it completed were those of the USFDA
approved Caraco Pharm Labs and the UKMCA approved M J Pharma. More details of the company can be
accessed at http://www.sunpharma.com.
Exhibit 7.2 Business mix of Glaxo
43%15%15%4%
21%2% AntibioticsChemicalsSolidsTablets & capsulesLiquid formulationsOthersBusiness MixSource: Glaxo.