Vivimed Labs Limited · NSE:VIVIMEDLAB
Vivimed Labs — Investor Presentation (November 2018)
59 slides from Vivimed Labs's investor presentation, November 2018
Slide 1: Vivimed Labs Ltd Investor Presentation – Nov 2018
Leveraging Delivering Partnering Global Affordable Innovation Presence Chemistry Vivimed Labs Ltd Investor Presentation – Nov 2018
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause actual resu
Slide 3: Table of Content
1 Business Snapshot 2 Sector overview 3 Our Business Leveraging Global Presence (UQUIFA & SONEAS) Table of Content Partnering Innovation Delivering Affordable Chemistry Specialty Chemicals Business 4 Financial Performance page 3
Slide 4: Vivimed at a Glance
Vivimed at a Glance Bulk Capsules and generics tablets Niche Syrups 1 generics and liquids API DIVISION 2 FDF DIVISION 1 7 CDMO DIVISION New Nasal generics sprays Branded Generics Ethical Ointments products Bulk generics Niche generics New generics Ethical products # Filings Anti-ulcer Antihistamine
Slide 5: Vivimed Labs in Numbers
Vivimed Labs in Numbers 1991 2000+ 12 Year of Foundation # of Employees # No. of Facilities 6 APIs, FDFs, and Across 3 Continents ( Europe, Asia, Specialty Chemicals North America) covering 5 countries # R&D Facilities Product Portfolio Market Presence `11,857 Mn `2,216 Mn `761 Mn Revenues (FY18) EB
Slide 6: Business Snapshot
Vivimed Business Snapshot
Slide 7: Key Developments - Milestones
Key Developments - Milestones 2011 2013 2015 2017 2018 UQUIFA Actavis Pharma Divested Investment by Soneas Personal care Orbimed Acquistion •$ 55 Mn acquisition •Rs. 122 cr acquisition •Added depth to the •Provided access to Division •$ 50 Mn Investment •€ 15 Mn acquisition API portfolio regulated m
Slide 8: Our Distinguished Clientele
Our Distinguished Clientele page 8
Slide 9: Management Team
Management Team DR. V MANOHAR RAO SANTOSH VARALWAR SANDEEP VARALWAR MARK I ROBBINS Chairman Managing Director & CEO Executive Director & SBU – Head FDF CEO - UQUIFA • Conceptualized and started ‘VVS • First generation entrepreneur • Associated with Vivimed since its • Mr. Robbins has been the CEO of
Slide 10: Business Divisions…
Business Divisions… Generic API CDMO Pharma Contract Manufacturing FDF Generic Branded JV (US) Business page 10
Slide 11: Business Divisions
Business Divisions Global supplier of niche molecules and formulations (Pharmaceuticals) Integrated player – presence across critical components in value chain Product wise Sales Mix (%) Specialty US FDA approved world class manufacturing facilities Chemicals , 12% Active Pharmaceutical Ingred
Slide 12: Sector Overview
Sector Overview Pharmaceuticals page 12
Slide 13: Pharmaceutical Industry – Overview (Global)
Pharmaceutical Industry – Overview (Global) $ 1.4 Tn $ 3.9 bn 37% $1415 - $1445 bn Global spending Spending on branded Increase in Global medicine on medicines by medicine in patent expiry spending by 2022 2022 (expected) developed market between 2018- (Forecasted) (past 5 years) as per 2022 IQVIA I
Slide 14: Pharmaceutical Industry – Developed Markets
Pharmaceutical Industry – Developed Markets $ 915-945 bn Pharmaceutical spending in developed markets by 2022 United States US pharmaceutical market is estimated to grow by 4-7% CAGR from US$ 466.6 Billion in 2017 to US$ 585-615 Billion in 2022 7.3% 4%-7% CAGR CAGR Price increases and introducti
Slide 15: Pharmaceutical Industry – Pharmerging Markets
Pharmaceutical Industry – Pharmerging Markets $ 345-375 bn Pharmaceutical spending in Pharmerging markets by 2022 2013-17 2018-22 Region / country 2017 2022 CAGR CAGR China 122.6 9.4% 145-175 5-8% Tier 2 Markets 67.3 11.2% 89-93 7-10% Brazil 33.1 11.5% 38-42 5-8% India 19.3 11.0% 26-30 9-12% 9-7% 6-
Slide 16: API & CDMO Business (UQUIFA & SONEAS)
API & CDMO Business (UQUIFA & SONEAS) page 16
Slide 17: Global presence: a strategic advantage
Global presence: a strategic advantage A global platform that combines quality with competitiveness BUDAPEST, HUNGARY BUDAPEST, HUNGARY ST CELONI, SPAIN LLIÇÀ DE VALL, SPAIN SAN FRANCISCO, USA ST. CELONI, SPAIN BARCELONA, SPAIN GUANGZHOU, CHINA CUERNAVACA, MEXICO HYDERABAD, INDIA CUERNAVACA, MEXICO
Slide 18: Leveraging Global Presence
Leveraging Global Presence Global Platform provides Strategic advantage UQUIFA operates across Spain, Mexico, Hungary, and India with a strong transnational management team. Global customer base with clients in more than 70 countries worldwide. Pharma Co has 42 distributor arrangements across
Slide 19: UQUIFA Group in Numbers
UQUIFA Group in Numbers 75% 25% API % CDMO % (Revenue share) (Revenue share) 70% 30% Spain Mexico (Geography mix) (Geography mix) Acquired in 2011, UQUIFA is home to our API business comprising of generics & Contract development and manufacturing organisation (CDMO) 4 40+ Multi-Product plants # Type
Slide 20: Timelines and key milestones
Timelines and key milestones Consistent record of reliability and adherence to quality standards UQUIFA Takeover Acquisition of Acquired by Focus on Soneas Incorporation by HCH the Mexican site Vivimed growth acquisition 1936 1991–92 1997–98 2011–12 2012–17 2017–18 • UQUIFA was • Acquired by • UQUIF
Slide 21: What is UQUIFA’s core positioning ?
What is UQUIFA’s core positioning ? Originator and Generic customers require support for chemical intermediates and API production in both the development and commercial phases Drug development UQUIFA’s core positioning Research Development phases High-scale manufacturing Distribution and I, II and
Slide 22: UQUIFA Group’s – Manufacturing Facilities
UQUIFA Group’s – Manufacturing Facilities Lliçà de Vall St Celoni Cuernavaca Budapest Spain Spain Mexico Hungary Capacity 140, 000 L 170, 000 L 180, 000 L 208, 000 L Number of reactors Last 29 reactors 29 reactors 30 reactors 58 reactors US FDA Inspection 8c- September 2015 Yes May 2017 July 2018 Ye
Slide 23: Regulatory expertise
Regulatory expertise Highly trained regulatory experts at each site with experience in all major geographies Filing Experience in all major geographies o Over 50 Type II DMF’s filed with the FDA o More than 150 active DMF’s worldwide Over 25 valid Certificates of Suitability Many years of succ
Slide 24: Generics – Firepower in existing products
Generics – Firepower in existing products Products Regulated Market Growth rate in UQUIFA’s Strategy volume (MT) target markets (%) Volume share (%) • Establish cost advantage Omeprazole 310 5-6 20 • Increase capacity • Increase new filings Quetiapine 215 6-9 5 • Enhance sales outreach • Establish c
Slide 25: New generic pipeline
New generic pipeline Under development Products Therapeutic Trademark Category Apixaban Anti thrombotic Eliquis Bilastine Antihistamine Bilaxten Brexpiprazole Anti psychotic Bilaxten Brivaracetam Anti epileptic Briviact Dabigatran Anti thrombotic Pradaxa Edoxaban Anti coagulant Savaysa USA, Lixiana
Slide 26: CDMO
Vivimed CDMO page 26
Slide 27: Why UQUIFA for CDMO?
Why UQUIFA for CDMO? Protection Quality Expertise Integration Flexibility We protect your Strong quality Technical expertise Backward Flexible and intellectual system approved by in the development integration ensures adaptable to fulfil property regulators and and manufacture of cost efficient your n
Slide 28: CDMO platform
CDMO platform Evolving constantly Based in Barcelona, Spain, we are one of the first API/ advanced intermediates manufacturing companies offering R&D and cGMP manufacturing across three continents. Post Soneas acquisition, we also use manufacturing facilities in Budapest, Hungary. Services include:
Slide 29: Chemistry capabilities
Chemistry capabilities Grignard reactions & Organometallic Chemistry Fisher esterification & trans-esterification Chiral Synthesis, Chiral resolution and Asymmetric Synthesis Borane derivatives & coupling reactions Heck reactions Ozonolysis Halogenations, Nitrations and Sulphur Chemistry Hydrogenati
Slide 30: Development and scale up capability
Development and scale up capability International R&D Spain and Mexico R&D Lab Spain and Mexico Pilot Plant Custom synthesis, process improvement Scale-up and small scale production Capable of producing compounds from 1g to 1kg Producing 1kg to multi-kg quantities for Phase I, II Small-scale g
Slide 31: CDMO case study
CDMO case study R&D product from US Biotech company Therapeutic area: ARV compound, VIH 5 different FDF Commercial 5 reaction steps batches Industrial challenge: nucleoside chemistry, hybride reaction ENGINEERING AND VALIDATION CAMPAIGN PILOT PLANT DEVELOPMENT PROCESS & ANALYTICAL TECH TRANSFER CUSTO
Slide 32: Soneas’ Offerings
Soneas’ Offerings Soneas Research Soneas Chemicals Product Development – Large Scale non-cGMP contract manufacturing – o Rapid development of APIs and their intermediaries o Rapid development of APIs and their o Custom contract manufacturing of cGMP APIs and intermediaries their intermediaries (la
Slide 33: Soneas Facilities
Soneas Facilities Soneas Research R&D laboratories: Pilot Plant (7847 m2): 7 research labs 1 kilo lab 3 analytical labs 1 analytical lab NMR lab 1 IPC lab 2 process & scale-up labs 3 pilot plant production units Soneas Chemicals Large scale manufacturing site (63.000 m2): 2 product
Slide 34: CDMO – Value Proposition
CDMO – Value Proposition Integrated solution provider following acquisition of Soneas Protect clients’ intellectual property Strong quality-control system approved by regulators and customers Technical expertise in manufacturing a wide range of APIs benefits in the co- development of the CDMO produc
Slide 35: Key Strategic Focus Areas
Key Strategic Focus Areas Achieve stronger client mining Expand therapeutic portfolio across anti- Determine correct ulcers, Central Nervous pricing to strengthen System (CNS) and competitive Cardio Vascular System positioning (CVS) categories Launch new products Continue to grow the in generics bus
Slide 36: Generics CDMO – UQUIFA dynamics
UQUIFA dynamics A summary of growth drivers in generics and CDMO • Molecule portfolio with growing demand in areas such as anti- ulcer, CNS, and CVS • Operational and cost efficiency is improving market share Expansion in Japan, Generics • Korea, and India Competitive advantage of regulatory complianc
Slide 37: Future growth drivers
Future growth drivers Looking forward CMO API • Leveraging strengths of chemistry and Soneas Platform manufacturing presence in the EU/NA. • Opportunity to leverage UQUIFA large scale • Scale up of current platform. relationship likely and leveraging of preferred • Access to new supplier relationshi
Slide 38: FDF
FDF page 38
Slide 39: FDF – Finished Dosage Formulation
Finished Dosage Formulation Value added business with focus on delivering quality and novel drug formulation Present in generic, branded and contract manufacturing Contract segments Manufacturing (CM) Capacity – 2 bn solid oral dosages FDF Generics Strategic tie-up with Strides Shasun to exp
Slide 40: Facilities Overview
Facilities Overview Kashipur, Uttarakhand ISO 9001-2000; ISO 4001 & OHSAS 18001 Klar-sehen, Hyderabad certifications ISO 13485 certified Jeedimetla Hyderabad PICs/NDA/WHO-GMP approvals WHO-GMP/ NAFDAC approvals CE certificate for medical devices Haridwar Uttarakhand Bolarum Hyderabad Alathur, Tamil
Slide 41: Key Strengths
Key Strengths Dedicated team Pan India Registered and 4 commercial of 60 scientists presence in commercialized ANDAs today working on Institution 4 products formulation Businesses like which includes developments ESIC, Railways Antiviral like for USA / and many Valaciclovir, Australia / EU Central A
Slide 42: Partnering Innovation
Partnering Innovation page 42
Slide 43: Partnership with Innovator Companies
Partnership with Innovator Companies Working with innovator companies Experience of having for the manufacture of worked with clients products in the areas of like Astellas, Leo, Anti-retro viral, Urinary Eisai and greater continence and Public engagements in acquired infections. Japan Markets after
Slide 44: JV with Strides : Win - Win proposition
JV with Strides : Win - Win proposition Entered into a 50:50 joint Mutual benefits - venture business with Vertical Integration of Strides to develop and APIs & exploitation of commercialize various mutual formulation ANDAs in US capabilities Looking to achieve 5 ANDAs per year Operations will be ca
Slide 45: Molecules commercialized under JV
Molecules commercialized under JV Particulars Amlodipine Donepezil Losartan Zolpidem Metronidazole Besylate Hydrochloride Potassium Tartrate Brand name Norvasc Aricept Cozaar/Hyzaar Flagyl Ambien Innovator Pfizer Eisai Merck & Co. Pfizer Sanofi Global sales ($ Mn) 312 200 500 44 50 # ANDA filers 373
Slide 46: Delivering Affordable Chemistry
Delivering Affordable Chemistry page 46
Slide 47: Delivering Affordable Chemistry
Delivering Affordable Chemistry •Good R&D teams with highly accomplished professionals across •FDA approved plants in Spain (2) all locations – Spain, Mexico, •Manufacturing plants spread and Mexico (1). Hungary and India. across Spain, Mexico and Hungary •cGMP approved R&D facilities in •We ensure
Slide 48: Growth Levers
Growth Levers Launching formulations based on UQUIFA APIs in India and other parts of the world Developing innovative formulations across multiple delivery formats for different parts of the world Bolstering revenues and strengthening position in the formulations business through JV with Strid
Slide 49: Specialty Chemicals Business
Specialty Chemicals Business page 49
Slide 50: Overview
Overview Description • Manufacturing active ingredients for home care, personal care and industrial products • Product range - hair dyes, photochromic dyes, photochromic products, anti-microbials and imaging chemicals • Maintains leadership position through captive manufacturing (Bidar-Karnataka) or
Slide 51: Top Customers
Top Customers Hair Dyes Photochromatic COSMOTEC page 51
Slide 52: Financial Overview
Financial Overview page 52
Slide 53: Financial Highlights – Q2 & H1 FY19
Financial Highlights – Q2 & H1 FY19 Revenues (Rs. cr) EBITDA (Rs. cr) 370 63 283 55 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 46 47 H1 FY18 H1 FY19 page 53
Slide 54: Segmental Performance – Q2 & H1 FY19
Segmental Performance – Q2 & H1 FY19 Pharma Business 13.4% 10.8% 10.3% 6.4% 231 320 495 637 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Specialty Chemicals Business 35.5% 33.5% 105 43.1% 34.3% 51 45 86 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 page 54
Slide 55: Debt Movement
Debt Movement * *Debt from Soneas acquisition is also included. Pre Soneas acquisition the debt was 756 Cr. Vivimed has been focussed towards debt reduction and reducing the cost of funds. Figures in Rs. Crore, as per IndAS page 55
Slide 56: Consolidated P&L Statement
Consolidated P&L Statement Rs Crs. Particulars Q2FY18 Q2FY19 YoY H1 FY18 H1 FY19 YoY REVENUE 282.5 364.6 29.1% 600.5 723.2 20.4% Cost of Material Consumed 107.4 149.4 39.1% 244.9 292.3 19.4% Employee Expenses 44.4 65.8 48.2% 87.2 123.8 42.0% Other Expenses 68.1 99.2 45.7% 139.4 188.1 34.9% EBITDA 62
Slide 57: Consolidated Balance Sheet
Consolidated Balance Sheet Rs Crs. As at As at As at As at Particulars Particulars Sep-18 Mar-18 Sep-18 Mar-18 ASSETS EQUITY AND LIABILITIES Non current assets Equity Equity share capital 16.50 16.50 Property, Plant and Equipment 759.04 744.72 Instruments entirely equity in nature 325.22 325.22 Inta
Slide 58: Profitability over Years
Profitability over Years *Financial results are not strictly comparable with the results of FY 2017 as revenues from sale of divested business to Exeltis and Clariant India are included in FY 17. Represents the normalised numbers for one- time gain from sale to Exeltis and Clariant India Ltd. page 5
Slide 59: Thank You
Thank You Full Name Sunil Arab Sunil.Arab@vivimedlabs.com Gavin Desa / Suraj Digawalekar +022 6645 1237 / 19 gavin@cdr-india.com suraj@cdr-india.com page 59