Healthcare

Generating Rs. 18 Bn. in revenue and contributing around 30.5% of overall revenue, Sunshine Healthcare’s pharmaceutical business makes up the core of the healthcare vertical and is the Group’s foremost growth driver. Sri Lanka’s third-largest pharmaceutical importer with a 13.1% market share, the business must necessarily navigate a highly competitive environment that’s subject to the strictest government regulation.

For a host of complicated reasons that includes resource scarcity, Sri Lanka’s pharmaceutical landscape has always been predominantly import-driven, with about 85% of the supply sourced internationally while local manufacturers meet the remainder. Sunshine Healthcare’s pharma division, being an agency house and master importer, plays a central role in ensuring that the nation has unfettered access to a steady supply of medicines and other healthcare solutions.

Sunshine Pharmaceuticals concentrates primarily on the private market, where imported pharmaceuticals sell alongside drugs sourced by the state. Every product distributed by the Company meets the Regulations set by the National Medicines Regulatory Authority (NMRA), while adhering to the even higher standards imposed by our principals abroad as well as ISO 9001:2015 and GDP (WHO) . Meanwhile, price controls and exchange rate volatility add another layer of complexity to this demanding mix, calling for scrupulous management to ensure and maintain compliance and cost efficiency.

While audits are regularly conducted across all five verticals, nowhere is scrutiny as intense as it is in the Group’s pharma unit, speaking to its heightened need to conform. With its legacy spanning over 50 years and vibrant partnerships with some 37 of the most recognisable pharmaceutical brands in the world, Sunshine Pharmaceuticals is widely regarded as an industry leader that commands trust, having won the confidence of both private and state sectors as well as individual consumers. The pharma division’s diverse product portfolio includes branded generics, biologicals (insulin) and original multinational brands, covering therapeutic areas as wide-ranging as respiratory care, diabetes management, dermatology, pain management and critical care. Sourced largely from India, Bangladesh, Pakistan, Denmark, Japan, and Southeast Asia, the pharmaceuticals BU has consistently been able to strike that all-important balance between affordability and quality to meet the evolving and increasingly nuanced needs of healthcare providers and patients alike.

Sunshine Healthcare’s pharmaceutical arm also upholds a rigorous Quality Management System (QMS) , holding such sought-after certifications as ISO 9001:2015 (UKAS) and Good Distribution Practices (WHO Bureau Veritas). This commitment to excellence extends to talent acquisition and retention, allowing for high service standards.

The operation's business model seamlessly integrates key functions, including regulatory compliance, import and clearance, inventory planning, tender management, business development and administration. It also encompasses quality assurance and pharmacovigilance, legal and compliance, ensuring robust governance. Additionally, support services such as Finance, HR, and IT provide essential operational backing.

Within the Group, the pharma unit does not exist in a silo, and Group synergies play a crucial role in advancing its business objectives. For instance, Healthguard Distribution’s advanced cold chain capabilities and real-time monitoring are utilised by the pharma business to maintain stringent temperature and storage standards set by both principals and the NMRA. The business model, overall, is designed to support and drive growth for principal brands and simultaneously support Sunshine’s own growth agenda, whilst ensuring operational efficiency and regulatory compliance.

Strategic realignment and operational consolidation were high on the agenda for the pharmaceuticals business in 2024-25, with the business making calculated moves to stay ahead of the curve in a rapidly evolving industry. Despite ongoing challenges posed by economic volatility, regulatory pressures, and shifting market dynamics, the pharma division showed much resilience during the reporting period, maintaining its position as the largest revenue earner for not just the healthcare vertical but for the entire conglomerate.

The pharmaceuticals segment has for years been a market leader in branded generics and multinational products, a trend that continued in 2024-25, with the Company successfully renewing registrations including dermatological, respiratory and cardiology treatments. These renewals were of particular significance given the increasingly stringent requirements set by the NMRA.

As regulatory conditions tightened over time, Sunshine Pharmaceuticals maintained its competitive edge by forging new agency partnerships in 2024, while also diversifying the Company’s product offerings. A strong emphasis on branded generics proved especially advantageous as multinational companies struggled to navigate the arduously convoluted local price controls.

Financially, the pharma business recorded notable revenue growth during the year, driven by new product introductions and a long overdue resolution of registration delays which allowed high-demand items to return to market. A major milestone in 2024-25 was an initiative to export plasma, developed in partnership with Intas Pharmaceuticals, which served as a new revenue stream, contributing 4% to revenue growth. Meanwhile, a volume growth of 17.3% and a value growth of nearly 12% outpaced the market average by a wide margin, thanks to well-executed strategic initiatives and portfolio optimisation efforts.

Though challenges persisted during much of the year, Sunshine Healthcare took pre-emptive measures to mitigate risks through supply chain diversification and procurement from cost-efficient markets, a prudent strategic approach that not only helped safeguard revenue but also strengthened the segment’s capacity to meet the growing demand for affordable, high-quality pharmaceuticals.

In a year marked by continuing external pressures and an increasingly complex regulatory climate, Sunshine Healthcare’s pharmaceuticals segment more than showcased its ability to adapt and thrive. Helped by strategic partnerships and a sharp focus on portfolio diversity, the segment remains well-positioned for sustainable growth in the years ahead.