Strong medicine
In hindsight, Sun Pharma’s timing couldn’t have been more perfect. Since making the leap from its home base in India to the Amsterdam Metropolitan Area four years ago, demand for Sun Pharma’s main product – generic medicines, has skyrocketed. The total European sales of patent-free medicines are likely to exceed 30 billion euros in 2013. So it’s easy to understand Logistics and Finance Head Prashant Savla’s enthusiasm about the company’s early move to the Amsterdam Metropolitan Area.
Savla explains, "This is a prime base of operations from which to further expand our share in the growing European market. Our physical presence here gives us an inside view into what our European customers want. And having a local point of contact is important to our customers, too."
Unique niche market
Sun Pharmaceuticals Industries is a leading player in an interesting niche market. In today’s world, people are living longer than ever, which means they are not only enjoying a longer old age but also taking more pills for longer. With the costs of all those medicines threatening to go through the roof, care professionals are showing an increasing preference for prescribing ‘generic’ medicines – medicines that are no longer under patent and that pharmaceutical companies other than the patent holder are therefore free to manufacture.
This development is also indirectly responsible for the growing number of pharmaceutical companies specialising in the manufacture of such patent-free medicines, particularly in India and China. Those are now ready for the next phase and are setting up a worldwide network of branches. Sun Pharma is a good example of a successful internationalisation strategy in action; more than half its revenue is currently generated outside India. After conquering the American market, the company has now turned its attention to Europe.
Formula
Sun Pharma’s choice for Amsterdam was based on a pre-formulated approach. They prepared a list of basic criteria that the ideal site would have to meet. This included excellent digital and physical accessibility, a good supply of English-speaking employees and a good connections to all 27 EU Member States. Equally important was the existence of a large Indian expat community. The sum total of these factors narrowed the choice down to the Amsterdam Metropolitan Area. "Plus, Schiphol is literally around the corner and all the logistics expertise we need to set up the best possible supply chain solutions is on our doorstep."
And of paramount importance to a business so directly affected by legislative and regulatory changes, the Hoofddorp office keeps a constant ear to the ground to find out what EU decision makers are saying about further opening up the European Union medicine market.
- Tell a friend
