11 Sep 2012, Vipul Murarka, BioSpectrum
Bangalore: Sun Pharmaceuticals has been ranked 38 in the Forbes World's 100 Most Innovative Companies. In a list of 100 companies that was largely dominated by those from the US, there were only five companies that were from India, with Sun Pharmaceutical being the only pharma company from India to be featured in the list. The company was also featured in Forbes' Asia's Fab 50 2012 list in the last month.
Forbes use a methodology called 'Innovation Premium' to compile the list of the 100 most innovative companies. It is calculated first by projecting a company's income from existing businesses along with the anticipated growth from those businesses, and looking at the net present value (NPV) of those cash flows.
The NPV of cash flows is then compared to existing businesses with a current market capitalization. Companies with a current market cap above the NPV of cash flows have an innovation premium built into their stock. Sun Pharmaceuticals got an innovation premium of 32.7.
Sun Pharmaceuticals spokesperson told BioSpectrum that, "We've deployed technology to create patient friendly solutions, as in month-long depot injections or safer anticancers. We've offered a complete basket of products including the latest treatments, and we've done this consistently over the last 25 years, creating value for the long term."
Sun Pharmaceuticals, which has recorded a 30.9 percent average annual sales growth over the last five years, saw a 38.1 percent and an 18 percent increase in operating income and earnings per share (EPS) respectively.