SUNPHARM LTD.

MISSION:
The mission of Sun India Pharmacy Ltd. is good health and happiness for all. We believe in utilizing
modern science to bring out the essence of nature and provide effective and high quality medicines at
affordable prices.

VISION:
With the prime objective of good health to all, Sun India Pharmacy aims to be amongst the top ten
Generic Pharma and OTC players in India in the span of next ten years. We intend to achieve this with
the help of strategic growth and stringent quality measures.

VALUES:
With a strong commitment to healthiness for all, we steer all our endeavors towards enabling more
and more of the people to gain access to medical products all over the country. Our medicines are
produced under strict quality controls and testing processes and are based on profound researches
thereby ensuring the effectiveness of medicines.

ABOUT SUN PHARMACEUTICAL INDUSTRIES LIMITED :

Sun Pharmaceutical Industries Limited (NSE: SUNPHARMA,BSE: 524715) is an Indian

multinational pharmaceutical company headquartered in Mumbai, Maharashtra that manufactures and
sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and
the United States. The company offers formulations in various therapeutic areas, such
as cardiology, psychiatry, neurology,gastroenterology and diabetology. It also provides APIs such as
warfarin, carbamazepine, etodolac, and clorazepate, as well as anticancers, steroids, peptides, sex
hormones, and controlled substances.

HISTORY:
Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapiwith five products to
treat psychiatry ailments. Cardiology products were introduced in 1987 followed
by gastroenterology products in 1989. Today it is the largest chronic prescription company in India and a
market leader inpsychiatry, neurology, cardiology, orthopedics, ophthalmology, gastroenterology
and nephrology.

The 2014 acquisition of Ranbaxy will make the company the largest pharma company in India, the
largest Indian pharma company in the US, and the 5th largest speciality generic company globally.
Over 72% of Sun Pharma sales are from markets outside India, primarily in the US. The US is the single
largest market, accounting for about 50% turnover; in all, formulations or finished dosage forms,
account for 93% of the turnover. Manufacturing is across 26 locations, including plants in the US,
Canada, Brazil, Mexico and Israel. In the US, the company markets a large basket of generics, with a
strong pipeline awaiting approval from the U.S. Food and Drug Administration (FDA).

Sun Pharma was listed on the stock exchange in 1994 in an issue oversubscribed 55 times. The founding
family continues to hold a majority stake in the company. Today Sun Pharma is the second largest and
the most profitable pharmaceutical company in India, as well as the largest pharmaceutical company by
market capitalisation on the Indian exchanges.

The Indian pharmaceutical industry has become the third largest producer in the world in terms of
volumes and is poised to grow into an industry of $20 billion in 2015 from the current turnover of $12
billion. In terms of value India still stands at number 14 in the world.

In 2009 Sun Pharma's Caraco Pharmaceutical's plant in Detroit was closed due to unsanitary conditions
resulting in the seizure of $20 million of drugs by the FDA for contamination issues.

In December 2016 the FDA sent Sun a warning letter about nine violations at its manufacturing plant
in Halol.

Sun Pharma requested the USFDA to withdraw approval for 28 Abbreviated New Drug Applications
(ANDAs) belonging to its wholly owned subsidiary Ranbaxy Laboratories.

Acquisitions and Joint Ventures:

Sun Pharma has complemented growth with select acquisitions over the last two decades. In 1996, Sun
purchased a bulk drug manufacturing plant at Ahmednagar from Knoll Pharmaceuticals and MJ
Pharma's dosage plant at Halol that are both U.S. FDA approved today. In 1997, Sun acquired Tamil
Nadu Dadha Pharmaceuticals Limited (TDPL) based in Chennai, mainly for their
extensive gynaecology and oncology brands. Also in 1997, Sun Pharma initiated their first foray into the
lucrative US market with the acquisition of Caraco Pharmaceuticals, based in Detroit.

In 1998, Sun acquired a number of respiratory brands from Natco Pharma. Other notable acquisitions
include Milmet Labs and Gujarat Lyka Organics (1999), Pradeep Drug Company (2000), Phlox Pharma
(2004), a formulation plant at Bryan, Ohio and ICN, Hungary from Valeant Pharma and Able Labs
(2005), and Chattem Chemicals (2008). In 2010, the company acquired a large stake in Taro
Pharmaceuticals, amongst the largest generic derma companies in the US, with operations across Canada
and Israel. The company currently owns ~ 69% stake in Taro, for about $260 million.

In 2011, Sun Pharma entered into a joint venture with MSD to bring complex or differentiated generics
to emerging markets (other than India).

In 2012, Sun announced acquisitions of two US companies: DUSA Pharmaceuticals, a dermatology

device company; and generic pharma company URL Pharma In 2013, the company announced an R&D
joint venture for ophthalmology with the research company, Intrexon.

On 6 April 2014, Sun Pharma announced that it would acquire 100% of Ranbaxy Laboratories Ltd,[18] in
an all-stock transaction, valued at $4 billion. Japan's Daiichi Sankyo held 63.4% stake in Ranbaxy. After
this acquisition, which is expected to close by end 2014, Sun Pharma would be the largest
pharmaceutical company in India, the largest Indian Pharma company in the US, and the 5th largest
generic company worldwide.

In December 2014, the Competition Commission of India approved Sun Pharma's $3.2 billion bid to buy
Ranbaxy Laboratories, but ordered the firms to divest seven products to ensure the deal doesn't harm
competition.

In March 2015, Sun Pharma announced it had agreed to buy GlaxoSmithKline's opiates business in
Australia to strengthen its pain management portfolio.

SPARG

In 2007, Sun Pharma demerged its innovative R&D arm, and listed it separately on the stock market as
the Sun Pharma Advanced Research Company Ltd. (NSE: SPARC, BSE: 532872). In 2013, SPARC
declared revenue of Rs. 873 million.[22] SPARC focuses on new chemical entities (NCE) research and
new drug delivery systems and offers an annual update of its pipeline (NDDS).

AWARDS:

Sun Pharma stood second in the India's Most Reputed Brands (Pharmaceutical) list in a study conducted
by BlueBytes, a leading Media Analytics firm in association with TRA Research, a brand insights
organization (both a part of the Comniscient Group).
BALANCE SHEET
ANALYSIS:
Ranbaxy deal to kick in, Halol overhang on Sun Pharma:Brokerages

Most analysts noted that the Q3 results were below their estimates, but maintained their buy rating on
the stock revising the target price slightly on lower side on hopes of Halol resolution, US specialty play
kicking in and normalization of India business.

Money control Bureau

Sun Pharmaceutical Industries, Indias largest drug maker by sales on Tuesday posted a net profit
decline of 5 percent to Rs 1471.8 crore in the third quarter ended December due to subdued sales growth
in US and India.

The revenues of the company grew by 8 percent to Rs 7683 crore in the third quarter. Most analysts
noted that Q3 results were below estimates, but maintained their buy rating on the stock revising the
target price on a lower side on hopes of early Halol resolution, Ranbaxy synergies, US specialty play
kicking in and normalisation of India business.

Here is what brokerage firms have to say about Sun Pharma's Q3 results.

Citi has a buy call on Sun Pharma, with reduced target price to Rs 900 from Rs 970. The brokerage
house raised FY17 EPS estimates by 4 percent but cut FY18/19 estimates by 7 percent/5 percent. On the
positive side Citi noted synergies on the Ranbaxy deal coming through as expected and good progress in
building a specialty
pipeline. On the flip side, it said a possible delay in fresh approvals from Halol plant, rising competitive
intensity in the derma space and the ongoing US department of justice (DoJ) enquiry would remain
overhangs in the medium term.

Nomura maintained its neutral rating increasing the target price from Rs 726 to Rs 734. The brokerage
firm cut FY17 earnings estimates for Sun Pharma by 9 percent, FY18 by 5 percent and FY19 by 3
percent after Q3 earnings missed analysts' expectations. Nomura noted that the generic business of Sun
Pharma is
under pressure, primarily due to price erosion in the US.

Any further delay in resolution of the Halol situation presents risks to our near-term estimates.

Nomura said that Suns efforts to build its specialty pipeline are critical to counter increasing completion
in generic business in the medium term. "The specialty portfolio creates an option value that limits the
risk of a significant P/E derating, in our view," it said.

CLSA maintained a buy call, reducing the target price to Rs 790 from Rs 800. The research firm also cut
FY17-F19 EPS by 1-4 percent and said Sun Pharmas near-term outlook could remain soft in the
absence of any major US launch. On a positive side it noted that Ranbaxy synergies remain on track
while specialty pipeline will strengthen further.

IDFC Securities maintained its buy call, but cut the target price by 17 percent to Rs 720. The brokerage
house reduced FY17 and FY18 earnings by 6 percent and 14 percent, respectively. IDFC said any delay
in Halol plants FDA issues resolution have added to near-term challenges arising out of heightened
price erosion in Taros derma franchise. The stabilization of India and EM business (+17 percent yoy
growth in 9mFY17), continued cost optimization along with possible Halol issue resolution by H1FY18
should help to drive earnings recovery from H2FY18 onwards, it said.

ICICI Securities maintained its buy rating on the stock with a target price of Rs 832 from earlier Rs 834
with downward revision of EPS by 2.4 percent in FY17, 6.4 percent in FY18 and 5 percent in FY19.
The brokerage firm lists pickup in base US sales with potential for higher growth post Halol clearance,
recovery in domestic formulations in FY18, 19.7 percent adjusted net profit CAGR over FY16-19E, and
attractive valuations 20.2x FY18E and 17.2x FY19E and success on specialty front as key drivers for the
company over FY18-19.

Morgan Stanley retained its equal-weight rating on the stock, with reduced target price at Rs 690 from
Rs 762. FY17, FY18 & FY19 EPS estimates cut buy 5.4 percent, 5.4 percent & 4.1 percent, it says.

JPMorgan says Sun Pharma's EBITDA (earnings before interest, tax, depreciation and amortisation)
miss was due to lower ex-Taro gross margins. Halol & ex-Taro performance are key drivers, it feels. The
research firm is overweight on the stock, with reduced target at Rs 750 from Rs 775. Goldman Sachs has
maintained buy rating on a favourable risk-reward on Sun Pharma but lowered target price to Rs 824
from Rs 836. It expects 14 percent EBITDA CAGR over FY16-19.

Karvy has retained its hold rating on the stock with a target price of Rs 697, down from previous target
price of Rs 737. The brokerage house reduced its EPS estimates for FY17E by 16.2 percent to Rs 27.1
and by 9.5 percent to Rs 30.3 for FY18E. On account of downgrade in earnings and possible long-term
implications due to DOJ investigation we downgrade our price target to Rs 697 based on multiple 23x
FY18E, Karvy said.