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News: In it's FY24 Annual Report, Sun Pharma has reiterated that it is open to exploring acquisitions in the global specialty portfolio as it closed financial year 2023-24 (FY24) with a strong net cash position of $2.4 billion. The contribution of global specialty increased from 7% of consolidated revenues in FY19 to 18% in FY24. In FY24, the firm’s R&D spend stood at $32 billion or 6.7% of overall sales. The specialty research and development (R&D) spend has continued to increase to strengthen the innovation pipeline, rising to $148 million in FY24 compared to $65 million in FY20. It accounted for 78% of the total R&D increase during the period.
Views: Sun has carved out it's own niche in the specialty portfolio over the last many years and is gaining experience in new therapies as well. Extended focus on Specialty bodes well as this portfolio has high entry barriers and enjoys better margins profile.
Impact: Positive