Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (March 2022)
55 slides from Sun Pharmaceutical Industries's investor presentation, March 2022
Slide 1: Creating Lasting Value
Creating Lasting Value Investor Presentation – March 2022 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 3: Contents
Contents 1 Sun Pharma at a glance 2 Long-term Strategy 3 Global Specialty Initiatives 4 Revenue Composition, History & Acquisition Track Record 5 Business Operations, R&D, Manufacturing 6 Corporate Governance 7 Financials – P&L, Balance Sheet, Cash Flows & Ratios 8 Key Milestones Targeted 3
Slide 4: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest Global Specialty Generic Company* US • Ranked 9th in US Generics Market## India • No. 1 Pharma Company in India • Amongst the largest Indian Pharma Company in Emerging Emerging Markets Markets Rest of World • Expanding presence in Rest of World Manufacturing Footpr
Slide 5: World's 4th Largest Specialty Generic Pharma Co
World’s 4th Largest Specialty Generic Pharma Co 0.0 2.0 2020 4.0Sales (US$ in billions) Worldwide Generic 6.0 8.0 Teva 8.5 Novartis 8.3 Viatris 5.3 Sun Pharma + Taro 3.8 Pfizer 3.6 Fresenius 3.3 Aurobindo 3.0 Apotex 2.5 Endo 1.9 Lupin 1.9 Dr. Reddy 1.9 Nichi-Iko 1.9 Sawai 1.8 STADA 1.8 Himka 1.7 Asp
Slide 6: Sun Pharma today
Sun Pharma today US Formulations India Branded Generics 9th largest generics company in US* with a strong No.1 ranked with 11 classes of doctor categories pipeline (88 ANDAs & 13 NDAs awaiting approval) Leading position in high growth chronic therapies Presence in Specialty branded & generic
Slide 7: Driving Sustainable Long Term Growth
Driving Sustainable Long Term Growth • Enhance share of specialty business • Achieve differentiation by focusing on • Optimize operational costs technically complex products • Vertically integrated operations • Focus on key markets – achieve critical mass • Speed to market • Ensure compliance with g
Slide 8: Our Specialty Portfolio
Our Specialty Portfolio • Indication - For plaque psoriasis • Launched in US in October 2018 & in Australia in Dec-2018, Phased launch in Europe by Almirall starting December 2018 onwards • Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were Ilumya/ maintained
Slide 9: Our Specialty Portfolio
Our Specialty Portfolio • Indication - For LABCC (locally advanced basal cell carcinoma) Odomzo • Currently marketed in US, Germany, France, Denmark, Switzerland, Australia and Israel • Indication - For metastatic castration resistant prostate cancer in combination with Yonsa methylprednisolone • La
Slide 10: Our Specialty Pipeline
Our Specialty Pipeline Route of Mechanism of Molecule/Asset Indication Pre-clinical Phase-1 Phase-2 Phase-3 Registration Approved Administration Action Ilumya Psoriatic IL-23 Injection (tildrakizumab) Arthritis Antagonist Psoriasis, Selective SIPR1 SCD-044 Atopic Oral Agonist Dermatitis Treatment Li
Slide 11: Highly Diversified Revenue Base
Highly Diversified Revenue Base Emerging Markets Rest of World 18% (RoW)# 15% API & Others 6% FY21 Sales India Branded Rs. 332 billion Formulations 31% US Formulations 30% # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. 11
Slide 12: Impressive Track Record of Growth
Impressive Track Record of Growth (All Figures in Rs Billion) CAGR for FY06-FY21 332.3 81.3 59.3 75.6 278.9 52.3 Adjusted Sales EBITDA 18.2 Net Profit 19.5 57.2 CAGR CAGR CAGR 22% 4.9 21% 5.7 17% 16.4 FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 66.9 50.0 24.7 61.7 21.8 32.8 Adjusted
Slide 13: Profitability and Return Ratios
Profitability and Return Ratios Adjusted Net Profit Gross Margin # EBITDA Margin Margin 73.8% 24.8% 72.6% 17.8% 71.5% 71.4% 19.9% 20.7% 20.0% 12.7% 13.5% 12.5% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ROCE ROE Market Cap (USD Bn) 13.5% 12.5% 11.8% 19.3 11.1% 11.0% 18.3 9.4% 16.6 8
Slide 14: Profitability
Profitability Gross Margin EBITDA Margin Adjusted Net Profit Margin 74% 73% 72% 71% 64% 64% 65% 64% 25% 20% 21% 20% 20% 16% 17% 18% 16% 13% 14% 13% 14% 9% 10% 9% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Sun Pharma Range o
Slide 15: Creating a Global Company
Creating a Global Company In-lincesed Winlevi® Agreement with (clascoterone Acquired cream 1%) for Acquired Dusa Merck for in- Acquired InSite Acquired Pola Began with 5 Biosintez in licensing Vision ophthalmic acne products Russia Pharma in Japan Tildrakizumab portfolio treatment in US & Canada Yea
Slide 16: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale Acquired the "Proactiv", "Restorative Elements" and "In Taro (Sun's subsidiary company) acquired US, Japan, 2022 Defense of Skin" brands. Strengthens Taro’s OTC Alchemee Business from Galderma Canada portfolio In-licensed Winlevi® 2021 US & Canada T
Slide 17: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale 2016 Acquired 14 brands from Novartis Japan Entry into Japan Distribution services agreement in India for brand “Oxra” & Distribution agreement with 2016 India “Oxramet”® (brands of dapagliflozin, used for diabetes AstraZeneca treatment) Distributio
Slide 18: US Business
US Business 30% of Revenues 18
Slide 19: US Business at a glance
US Business at a glance 9th Largest Pharma Company in the US Generics Market * Dermatology Segment • Ranked 2nd by prescriptions## in the US dermatology market • Wide basket of 600 ANDAs & 66 NDAs filed and 512 ANDAs & 53 Comprehensive Portfolio** NDAs approved across multiple therapies Robust Pipel
Slide 20: US Business – Sales
US Business – Sales Sales in Rs. billion 10 year CAGR - 16% 137 135 138 107 105 101 98 87 62 35 23 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 20
Slide 21: Key Milestones in US
Key Milestones in US FY22 • Launched Winlevi® (clascoterone cream 1%) for topical treatment of acne vulgaris • Presented long term clinical data for Ilumya & other clinical insights for Odomzo & Levulan at American Academy of Dermatology Conference FY21 • Presented Pre-clinical data for GL0034 (GLP-
Slide 22: ANDA & NDA Pipeline
ANDA & NDA Pipeline ANDAs Filed and Approved (Cumulative) NDA Filed and Approved (Cumulative) 584 595 600 571 581 561 501 512 483 453 66 427 422 64 59 60 55 55 53 52 41 42 39 36 FY17 FY18 FY19 FY20 FY21 Q3FY22 FY17 FY18 FY19 FY20 FY21 Q3FY22 Cumulative Products Filed Cumulative Products Filed Cumula
Slide 23: India Branded Generic Business
India Branded Generic Business 31% of Revenues 23
Slide 24: India Business at a glance
India Business at a glance No. 1 in India Market Position** • No. 1 ranked with 8.2% market share Prescription Ranking## • No. 1 ranked by prescriptions with 11 different classes of doctors Chronic Segment • Market leader in the chronic segment Acute Segment • Strong positioning in the acute segment
Slide 25: Largest Pharma Company in India
Largest Pharma Company in India Market Share Formulation Sales in India as of 12 Months ended Dec 2021 (Rs. mn) 137,580 Sun Pharma 8.2% 104,140 Abbott + Abbott HC + Novo 6.2% 83,460 Cipla 5.0% 73,510 Mankind 4.4% 65,660 Zydus 3.9% 62,750 Lupin 3.8% 58,640 Alkem + Cachet + Indchemie 3.5% 52,660 Torre
Slide 26: India Business – Sales ramp-up
India Business – Sales ramp-up Sales in Rs. Billion Therapeutic Revenue Break-up** 10 year CAGR -16% Others One-time Opthalmology 2% 4% Cardiology impact of 103 Urology 3% 17% change in 97 Gynaecology, 4% Impact of distribution Vitamins / Ranbaxy Minerals / Acquisition 80 77 Nutrients, 5% 71 73 Resp
Slide 27: Leadership in key therapeutic areas
Leadership in key therapeutic areas* Number 1 Ranking with 11 Doctor Categories* Prescription Ranking Specialist Oct ‘17 Oct ’18 Oct ‘19 Oct ‘20 Oct ‘21 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Orthopaedic 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1 1 1
Slide 28: Best-in-class field force productivity
Best-in-class field force productivity Sales Per Medical Representative (Rs. Mn) 9,291 9,291 9,550 9,707 10,963 • Well trained and scientifically Impact of oriented sales representatives sales force team with strong performance 10.0 expansion track record 9.4 8.8 8.3 8.6 • Field force with highest p
Slide 29: Emerging Markets
Emerging Markets 18% of Revenues 29
Slide 30: Emerging Markets Business at a glance
Emerging Markets Business at a glance Amongst the leading Indian Companies in Emerging Markets Global footprint • Presence in about 80 markets • Romania, Russia, South Africa, Brazil, Mexico and complementary Focus Markets & affiliated markets Product Portfolio • Extensive basket of branded products
Slide 31: Rest of World (Western Europe, Canada, Japan, ANZ, Israel & Other Markets)
Rest of World (Western Europe, Canada, Japan, ANZ, Israel & Other Markets) 15% of Revenues 31
Slide 32: Rest of World Markets at a glance
Rest of World Markets at a glance Amongst the leading Indian Companies • Across all major markets in Western Europe, Canada, A&NZ, Market Presence Japan, Israel and other markets • Expanding basket of products including specialty brands, Product Portfolio injectable & hospital products as well as pr
Slide 33: Global Consumer Healthcare Business
Global Consumer Healthcare Business 33
Slide 34: Global Consumer Healthcare Business at a glance
Global Consumer Healthcare Business at a glance An Attractive Opportunity India • Amongst the top 10 consumer healthcare companies Global Presence • Presence in about 20+ countries • Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland, Focus Markets Thailand, Belarus, Kazakhstan, Morocc
Slide 35: Active Pharmaceutical Ingredients (API) Business
Active Pharmaceutical Ingredients (API) Business 6% of Revenues 35
Slide 36: API Business
API Business Backward Integration – Strategic Importance • Backward integration provides cost competitiveness and supply Strategic Importance reliability Customers • Large generic and innovator companies Product Portfolio • Approximately 370 APIs Pipeline Development • Approx. 20-30 APIs scaled up a
Slide 37: Research & Development
9 SUN PHARMA Research & Development
Slide 38: Research & Development
Research & Development Cumulative R&D Spend of ~Rs. 209 billion to date • R&D spend at 6.5% of sales for FY21 R&D Spend • Strong cash flows & large scale to support R&D investments • Capabilities in finished dosage development, biological support, Capabilities chemistry and new drug development • Ap
Slide 39: R&D Investments
R&D Investments R&D Investments Filings and Approvals 7.6% 8.6% 6.9% 6.1% 6.5% ANDA NDA/BLA DMF/CEP Patents** 2,129 23.1 600 66 485 22.5 21.5 19.8 19.8 512 53 376 1,386 FY17 FY18 FY19 FY20 FY21 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes Expired/Abandoned Patents R&D Inves
Slide 40: Global Manufacturing Presence
Global Manufacturing Presence 40
Slide 41: Global Manufacturing Presence
Global Manufacturing Presence World Class Manufacturing Infrastructure • 43 manufacturing facilities across India, the Americas, Asia, Africa, Extensive Global Footprint Australia and Europe • Vertically integrated network across six continents enabling high Integrated Network quality, low cost and
Slide 42: Manufacturing Facilities
Manufacturing Facilities 43 manufacturing sites • Formulation • India : 15, US : 3 • Canada, Japan, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each • Capacities available for a variety of finished dosages • API • India : 9, Australia : 2, Israel : 1,
Slide 43: Corporate Governance
Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Chairman Israel Makov Former President & CEO of Teva Pharmaceuticals Industries Ltd. Independent Director Ind
Slide 44: Financials
Financials 44
Slide 45: Financials
Financials Market Capitalisation Rs. 2,100 billion / US$ 29 billion (as of 17th March 2022) ( All Figures in Rs. Mn ) Y FY17 YoY FY18 YoY FY19 ** YoY FY20 YoY FY21 YoY o P&L Summary Sales 302,642 9% 260,659 -14% 286,863 10% 323,252 13% 332,331 3% Gross Profit 221,335 3% 186,413 -16% 208,173 12% 230,
Slide 46: Sales Break-up
Sales Break-up In Rs Billion Sales 303 261 287 323 332 21 20 16 45 49 26 18 15 35 45 58 30 55 54 48 105 101 138 87 107 97 103 77 80 73 FY17 FY18 FY19 FY20 FY21 India Formulations US Formulations Emerging Markets Rest of World API+Others 46
Slide 47: EBITDA Trend
EBITDA Trend In Rs Billion Sales 303 261 287 323 332 % of Sales 26.9% 28.0% 27.4% 28.6% 26.1% 16.2% 20.6% 21.0% 20.8% 19.7% 27.9% 28.5% 31.0% 31.1% 31.8% 29.0% 24.8% 19.9% 20.7% 20.0% FY17 FY18 FY19 FY20 FY21 EBITDA Other Expenditure Personnel Costs Material Costs 47
Slide 48: Cash Flow & Debt
Cash Flow & Debt Net Cash From Operating Activities (Rs. Bn) Free Cash Flow (Rs. Bn) 70.8 65.5 50.1 50.0 61.7 33.9 39.1 22.0 19.5 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 -10.2 Gross Debt (Rs. Bn) Net Cash (Excluding Debt) (Rs. Bn) 103.0 98.3 103.6 104.8 82.2 69.5 57.7 45.0 37.7 34.7 FY17 F
Slide 49: Financial Ratios
Financial Ratios FY17 FY18 FY19** FY20 FY21 Growth (%) Sales 8.5 (13.9) 10.1 12.7 2.8 Gross Profit 2.7 (15.8) 11.7 10.9 6.3 EBITDA 16.1 (40.9) 14.3 9.3 27.0 Net Profit 53.2 (69.9) 27.2 41.3 (22.9) Net Profit (Adjusted) 33.1 (52.6)# 17.5# 3.8# 47.4# Margins (%) Gross Margin 73.1 71.5 72.6 71.4 73.9 E
Slide 50: Key Financials Q3 & 9m FY22
Key Financials Q3 & 9m FY22 ( All Figures in Rs. Mn ) Q3 FY22 Q3 FY21 CHANGE 9m FY22 9m FY21 CHANGE Gross Sales 98,142 88,088 11.4% 290,403 247,693 17.2% Gross Profit 71,736 64,754 10.8% 212,284 183,200 15.9% Gross Margin 73.1% 73.5% 73.1% 74.0% EBITDA 25,574 23,782 7.5% 78,900 62,371 26.5% EBITDA M
Slide 51: Sales Breakup Q3 & 9m FY22
Sales Breakup Q3 & 9m FY22 ( All Figures in Rs. Mn ) Q3 FY22 Q3 FY21 CHANGE 9m FY22 9m FY21 CHANGE Formulation India 31,676 27,528 15.1% 96,637 76,724 26.0% US 29,718 27,629 7.6% 84,491 73,933 14.3% Emerging Markets 17,899 15,073 18.8% 51,957 43,825 18.6% ROW # 13,532 12,991 4.2% 41,138 36,788 11.8%
Slide 52: Key Milestones targeted for future
Key Milestones targeted for future • Enhance share of specialty/branded business US Business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement India • Maintain leadersh
Slide 53: Key Milestones targeted for future
Key Milestones targeted for future • Unwavering focus on Sustainability, built on a legacy rooted in caring for people, communities and the planet. Sustainability • Committed to Governance, Community Upliftment, Access to Affordable Healthcare & Environment Conservation • Focus on developing complex
Slide 54: Sun Pharma at a glance
Sun Pharma at a glance 4th Largest Global Specialty Generic Company* US • Ranked 9th in US Generics Market## India • No. 1 Pharma Company in India • Amongst the largest Indian Pharma Company in Emerging Emerging Markets Markets Rest of World • Expanding presence in Rest of World Manufacturing Footpr
Slide 55: Thank You
Thank You! For more information please contact: Investors: Thank You Nimish Desai Tel : +91 22 4324 4324, Ext 2778 Tel Direct +91 22 4324 2778 nimish.desai@sunpharma.com Corporate Address: SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Indu
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