Sun Pharmaceuticals Industries Ltd. Managing Director Dilip Shanghvi aspires to increase the company's research and development spend to a billion dollars in the next three to five years.
The company aims to go from the current 7% R&D revenue level to 9% in terms of overall R&D spend, he said at the Vriddhi 2024 conference by the Indian Drug Manufacturers' Association in Pune on Feb. 24. "This will help bring newer and innovative products."
Currently, the company spends around 40% of its overall R&D budget on innovative products. While the amount will increase, he said that the percentage spent on innovative products will continue to remain the same.
While the company manages to achieve its targeted revenue numbers from generics in the U.S., it is never from the products and sales that it envisaged, Shanghvi said. "It is more like a lottery."
Certain early approvals or high sales of unexpected products help the pharma company make money, but there is no consistency. This is why it would not want to invest more in generic R&D, he said.
Shanghvi the company's psoriasis' treatment drug, Ilumya—a specialty product—to be a billion-dollar product in the next few years.
Changing Industry Landscape
Over-the-counter, or consumer-promoted, products will become an important component of the future market, according to Shanghvi.
He expects a higher percentage of current business to shift to consumer products. The industry does not currently have the skillset for the change, but it is a skillset "that we must create."
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