Lupin Investor Presentation Q3FY14
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Transcript of Lupin Investor Presentation Q3FY14
Lupin Investor Presentation Q3FY14
Vision: To be an innovationled transnational company
Safe harbor statement
Materials and information provided during this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements.
Risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited, to technological advances and patents attained by competitors, challenges inherent in new product development, including completion of clinical trials; claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and healthcare cost containment, and governmental laws and regulations affecting domestic and foreign operations.
Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not limited, to inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market acceptance.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Lupin today
Conversion rate: USD = INR 54.30
8th largest Market Cap amongst Global Generic Companies ~$5.7 billion
Revenues > $ 1.74 billion
Top 4 Pharmaceutical company in India
Secular growth across the geographies
Onshore presence in 10 countries (significant presence across 4 countries)
R&D expenditure @ 7.5% of net sales
Vertically integrated
12 manufacturing sites (5 US FDA approved) (2 sites in Japan)
Awards & accolades
NDTV Business Leadership Awards - Pharma Company of the Year 2012
Lupin was ranked amongst top 2 pharma companies in the Great Place to
Work survey ‘Best Companies to work for 2013, India’ and amongst the Top
50 companies overall
NSE included Lupin in the S&P CNX NIFTY index
Ernst & Young Entrepreneur of the Year 2011, for Life Sciences and Health
Care: Dr Desh Bandhu Gupta
Ernst & Young Family Business Award 2012: Ms. Vinita Gupta
CVS Caremark Supplier Partner Award winner - Pharmacy Category for 2012
FY08 FY09 FY10 FY11 FY12 FY13
6,423 7,4399,981
12,00014,590
22,978
FY08 FY09 FY10 FY11 FY12 FY13
28,34137,950
47,73657,068
69,597
94,616
Evolved into a multinational company with >70 % of turnover from outside India
► 4th largest pharma company in India
► 5th largest and fastest growing generic player in the US by prescriptions
► 7th largest and the fastest growing generic player in Japan
Net Sales - CAGR 27% EBITDA - CAGR 29%
Consistent track record of growth
Figures in Rs. m
FY08 FY09 FY10 FY11 FY12 FY13
10.00 12.1715.84
19.36 19.43
29.39Basic EPS (Rs.)
FY 08 FY 09 FY 10 FY 11 FY 12 FY13
100125 135 150 160
200Dividend %
Profit & shareholder returns
FY08 FY09 FY10 FY11 FY12 FY13
4,0835,015
6,8168,626 8,676
13,142
Net profit - CAGR 26%
Figures in Rs. m
Major markets (Net sales)
Geographical breakup
Sales break up
US sales split
Business Mix – FY13
India 28%
Outside India 72%
API10%
Formula-tions90%
Brand21%
Generic79%
40%
2%25%
14%
3%
6% 10% US (including IP)EuropeIndiaJapanSouth AfricaRest of worldAPI
9MFY13 9MFY14
69,243
80,351 Net Sales Rs. m
Corporate Highlights 9MFY14
Continued investment for growth
Capital expenditure at Rs. 3,639 m
Revenue expenditure on R&D 8.5% of net sales at Rs. 6,838 m
Filed 12 ANDA & received 19 approvals
Consistent performance:
Net sales grew by 16% to Rs. 80,351 m during 9MFY14
PBT grew by 45% to Rs. 20,360 m during 9MFY14
US & Europe business (including IP) grew by 30%
South Africa grew by 19%
9MFY13 9MFY14
16,329
22,371 EBITDA Rs. m
9MFY13 9MFY14
9,061
12,834 Net Profit Rs. m
16%
37% 42%
Q3FY14 performance
Q3FY13 Q3FY14
24,659
29,830 Net Sales Rs. m
Corporate Highlights Q3FY14
Continued investment for growth
Acquired Nanomi B.V. in Netherlands
Capex at Rs. 1,041 m
Revenue expenditure on R&D 9.1% of net sales at Rs. 2,710 m
Consistent performance:
Net sales grew by 21% to Rs. 29,830 m during Q3FY14
PBT grew by 33% to Rs. 7,379 m during Q3FY14
US & Europe business (including IP) grew by 29%
South Africa grew by 18%
Q3FY13 Q3FY14
6,314
8,057 EBITDA Rs. m
Q3FY13 Q3FY14
3,352
4,761 Net Profit Rs. m
21%28%
42%
Major markets (Net sales)
Geographical breakup
Sales break up
US sales split
Business Mix – Q3FY14
25%
75%
IndiaOutside India
10%
90%
APIFormulations
11%
89%BrandGeneric
45%
2%22%
13%
3%5%
10%US (incl. IP) Europe
India Japan
South Africa ROW
API
Business update
Q3FY13 Q3FY14
10,988
14,228 Net sales (Rs. m)
United States & Europe US business grew 31% to Rs. 13,567 m in Q3FY14
from Rs. 10,390 in Q3FY13 & contributed 45% to overall revenues
Brand business contributed 11% to US sales, while generics contributed 89%
5 products launched during the quarter
Current product portfolio of 62 products
No. 1 market share in 26 products & Top 3 market share in 44 products
Europe business grew 11% to Rs. 661 m in Q3FY14 from Rs. 598 m in Q3FY13 & contributed 2% to overall sales
29%
Acquired Nanomi B.V. in Netherlands. Nanomi has patented technology platforms to develop complex injectable products.
Filed 5 ANDAs & received 5 approvals during the quarter
India
India formulations sales grew by 14% to Rs. 6,504 m during Q3FY14
9th largest Indian company in domestic market**
Launched 8 new products during the quarter
Field force strength +5,000 no.’s
Entered into strategic partnership with MSD to co – market MSD’s PPV in India
** Source : (AICOD AWACS MAT Dec 13)
23%
8%
10%
14%
15%
8%
4%
4%
14%
Therapy MixCVS
Anti-TB
Anti - Asthama
Anti Biotics + Ceph Oral & Inj.
Anti Diabetic
Gastro Intestinal (GI)
CNS
Gynaecology
Others
Q3FY13 Q3FY14
5,497
6,046 Net Sales (JPY m)
Japan & ROW
Q3FY14 Japan sales stands at Rs. 3,720 m
Strong presence in CNS, CVS, GI & Respiratory segments
Focus on improving I’rom overall business quality
Commercialization for products developed in India
Kyowa field force size increased from 95 to 114
Azithromycin, TS 1, Pitavastatin & Valacyclovir launched during the quarter
South Africa
4th largest Generic Pharma company
# 1 CVS player in South Africa
5 products registered during the quarter
Philippines
Ranked 28th as per IMS MAT Nov 2013
Growth of 23% vs. industry growth at 3%
Oncology division & 2 products launched
during the quarter
Australia
Launched Terbinafine during the quarter
Cost, quality and reliability are the cornerstones of our API
strategy
Strategic input into formulations business
Global leadership in chosen therapies
► Cephs
► Ceph-intermediates
► Anti-TB range
Achieved global cost, capacity and market share leadership in
most products
API and intermediates
Globally Integrated Research & Manufacturing network
Nagpur
R&D
FY07 FY08 FY09 FY10 FY11 FY12 FY13
1,359 1,546 2,318
3,570 4,834 5,228
R&D spends (Rs. m)
R&D expenditure Q3FY14 stands at Rs. 2,710 m, 9.1% of net sales
Talent pool of 1200+ scientists 186 ANDA filings, of which 96 have been
approved by the USFDA Filed 5 ANDA & received 5 approvals
during the quarter Increased focus on F2F
NDDD:► Pipeline of 10 programs in
various phases of drug discovery Bio-similars:► Approval received for GCSF
(Filgrastim)► Pipeline of 10 drugs in various
phases of development
7,098
Highlights Capex of Rs. 1,041 m during Q3FY14
Successful inspections of plants by various regulatory
agencies without critical observations:
USFDA : Tarapur, Dabhasa, Indore & Aurangabad
(Zero 483 in all inspections)
MHRA : Indore, Mandideep
TGA : Mandideep
ANVISA: Ankleshwar, Tarapur
MCC: Aurangabad
Frost & Sullivan in association with The Economic Times
conferred “Manufacturing Excellence Award”
Supply chain initiative rolled out to efficiently meet global
scale up & complexity challenges
Capabilities 10 manufacturing locations (2 in Japan)
housing 12 sites
► 5 API sites
► 7 formulation sites
5 FDA inspected sites
Manufacturing capabilities across tablets,
capsules, liquids, injectables and MDIs
Combined capacity of ~ 20b dosage units
Mihan formulation site for US commissioned
Sep’13
OCs launched in U.S. market from Indore
Investments in - ophthalmology, derma and
inhalers
Globally integrated supply chain
• Disruptive costs• Supply chain efficiency
• Geographical expansion• Brands• Platform technologies
• Leadership pipeline & capability building
• Sustainability initiatives (people, planet & profitability)
Growth Levers & Enablers
R&D M&A
People & Capability
Supply Chain
• Healthy pipeline• Value added generics• Specialties
•NDDR program
Thank You