Sun pharmaceutical industries limited: Healthy disclosure (House of Tatas)

Abstract

Sun Pharmaceutical Industries Limited is the largest pharmaceutical company in India and one of the top five generic pharmaceutical companies in the world. For the past two decades, Sun Pharma has delivered high growth and profitability which has ensured that its stock has consistently traded at a premium above the industry average. However, for the past year, Sun Pharma has been at the receiving end of a spate of corporate governance issues, including whistleblower complaints to the stock market regulators, surrounding the company’s dealings with related parties and its disclosure practices. A study of the company’s recent challenges, in the backdrop of its spectacular growth and performance record till date, afford an excellent opportunity to examine the role and relevance of disclosure norms and regulations in enabling better corporate governance.