Sun Pharma Advanced Research Company (SPARC) was formed after the demerger of Sun Pharma Industries’ (SPIL) innovative R&D business. SPARC, which got listed on July 18, ’07, is an international research-based pharmaceutical company that discovers and develops new drugs / delivery systems. SPARC’s innovation philosophy is based on finding drugs for unmet medical needs by focusing on validated targets, implying reduced risk, while not compromising much on the huge potential upside. ICICI is confident of NPV for the pipeline at ~US$700mn or Rs149 / share and expect significant value creation in the next 3-5 years.
SPARC is the only listed Indian company that focuses purely on pharma drug discovery research. SPARC’s innovation philosophy of finding a drug and develop analogue NCEs is an appropriate and ‘relatively lower risk yet higher returns’ strategy. The current pipeline is an impressive mix of two NCEs, two pro-drug NCEs, and eight products under development using four distinct novel drug discovery system (NDDS) platform technologies.