Glenmark Pharmaceuticals Limited · NSE:GLENMARK
Glenmark Pharmaceuticals — Investor Day (November 2022)
55 slides from Glenmark Pharmaceuticals's investor day presentation, Nov 17, 2022
Slide 1: Glenmark – A new way for a new world (filing cover letter)
G qlenma~k A new way for a new world November 17, 2022 To, To, Dy. General Manager The Manager – Listing, Department of Corporate Services, The National Stock Exchange of India Ltd., BSE Ltd., Plot No. C/1, G Block, P. J. Towers, Dalal Street, Bandra Kurla Complex, Fort, Mumbai – 400 001. Bandra (E)
Slide 2: Investor Day 2022
Presentation Heading or Sub Heading Glenmark Pharmaceuticals Ltd. Investor Day 2022 17 November 2022
Slide 3: Disclaimer
Disclaimer This document has been prepared by Glenmark Pharmaceuticals Ltd. and the information, statements and analysis made in this document describing the Company’s or its affiliates’ objectives, projections and estimates are forward looking statements. Forward-looking statements are all statemen
Slide 4: Today's agenda
Today’s agenda The Road to FY27 Glenn Saldanha Chairman and Managing Director Scaling up a Diversified Global Formulations Business Brendan O’Grady Chief Executive Officer – Global Formulation Business From now on …ichnos… Cyril Konto, MD President and Chief Executive Officer Resilient Financials at
Slide 5: The Road to FY27
The Road to FY27 Glenn Saldanha Chairman and Managing Director Glenmark Pharmaceuticals Ltd. 4
Slide 6: Glenmark's vision has guided its journey over the last two decades
Glenmark’s vision has guided its journey over the last two decades…. Glenmark Group, two decades ago Consolidated revenues: ~ ₹ 1,700 mn1 To emerge as a Revenue contribution of ex-India markets: ~8% Leading, Integrated, Manufacturing facilities: 2 (formulations) Research-led, Global Global employee
Slide 7: Glenmark Group, today
Glenmark’s vision has guided its journey over the last two decades…. Glenmark Group, today Leading Integrated Research-led Global Consolidated revenues in FY22: End-to-end R&D capabilities: API, Initiated NME research in 2002; Global diversified formulations ₹ 123,049 mn generic formulations (conven
Slide 8: Strategic restructuring for sharper focus on our three businesses
Strategic restructuring for sharper focus on our three businesses Separate board Independent Global presence of directors management team & operations Primarily focused on building a global formulation business with branded, generics, and OTC segments in therapy areas of Dermatology, Respiratory and
Slide 9: Prudent capital allocation to drive future growth
Prudent capital allocation to drive future growth … Business Growth and Expansion Strengthen Financial Metrics MOVE FURTHER UP THE FOCUS ON CORE THERAPY OPTIMIZE RISK ACROSS BUILD A RESILIENT FINANCIAL VALUE CHAIN AREAS INNOVATION PROFILE Increase revenue contribution Maintain stronghold in Op
Slide 10: Clear targets to create shareholder value
… with clear targets to create shareholder value Double digit Continuous Zero net debt by 22% ROCE1,2 by revenue growth improvement in FY26 FY27 over next 4 years EBITDA margin Evaluate enhancing dividend pay-outs, share buybacks over the next 4 years 1. ROCE: Earnings Before Interest & Tax (EBIT) /
Slide 11: Committed to Sustainability across all our operations globally
Committed to Sustainability across all our operations globally Our ESG ambitions Environmental Social Governance Become carbon neutral by 2030* 16 global safety programs by 2023 Maintain an ethical business culture to Achieve water neutral operations by Aspire to impact 3 million lives by 2025 drive
Slide 12: Glenmark in FY27
Glenmark in FY27 + ~2/3rd of consolidated revenue to be contributed by branded products / markets + Commercial launch of 1 innovative asset between GPL and Ichnos (either on our own or via partners) + Ensure Ichnos is self-funded (through partnerships, external capital raise / listing) + Continue to
Slide 13: Scaling up a Diversified Global Formulations Business
Scaling up a Diversified Global Formulations Business Brendan O’Grady CEO – Global Formulation Business Glenmark Pharmaceuticals Ltd. 12
Slide 14: Focused and differentiated approach to ensure sustained growth
Focused and differentiated approach to ensure sustained growth Global Formulation Business Branded, Generics, OTC INDIA NORTH AMERICA EUROPE ROW 17.6% Revenue 33.2% 12.4% Contribution1 24.7% Business Branded, OTC Generics, OTC Generics, Branded Branded Model USA, Generics: WEU RCIS, Asia, LatAm, Key
Slide 15: Robust revenue growth with branded markets being key drivers
Robust revenue growth with branded markets being key drivers Glenmark revenue by region (₹ mn) CAGR 98,655 123,049 8% 28.1% 33.2% 14% 70% of our key markets / clusters outperformed the covered market1 31.8% 24.7% -1% ROW growth led by launch of Respiratory portfolio and expansion in existing markets
Slide 16: Strategic levers to achieve future growth targets
Strategic levers to achieve future growth targets 6 Drive Operating Leverage 1 Enhance Market Penetration Continue to gain scale to improve Consolidate presence and strengthen profitability and free cash generation position in existing markets 5 Build Global Brands 2 Shift in Regional / Product Mix
Slide 17: Optimizing capital allocation to high growth / return regions
Optimizing capital allocation to ensure increasing Increasing contribution from branded markets contribution from high growth / return regions Market Wise Revenue Share FY19 API + Others Branded 48.2% • Focus on high margin play Branded, OTC Increasing focus • Portfolio & field force expansion to
Slide 18: Increase share of Respiratory and Oncology while maintaining Dermatology
Targeting to increase share of Respiratory and Oncology while maintaining stronghold in Dermatology Dermatology Respiratory Oncology Emerging therapy with Innovation driven cutting-edge Legacy therapy development of complex products research Maintain stronghold across Expand presence across acut
Slide 19: Global Respiratory portfolio will be a key growth driver
Global Respiratory portfolio will be a key growth driver in future years Ryaltris® Other Branded / Generic Portfolio Ryaltris® Growth Leading Market shares1 India + ROW expected to contribute 4-5% of Top 5 in the Respiratory segment in India3 FY27e consolidated revenue 13.6% Top 3 in the expecto
Slide 20: India – sustained market beating growth
India – sustained market beating growth through therapy focus and brand building One of the fastest growing Sharp focus on key therapy areas Clear goal to build mega-brands companies in Indian market Revenue (₹ mn) Contribution for Glenmark1 Rank in IPM1 Others +14% 13% 8 Brands1 13 Brands1 16 2 40,
Slide 21: India – strategic levers going forward
India – strategic levers going forward Geographical & Field Brand Building Force Expansion Increase / Strengthen Continue Focus on Core Therapeutic Areas OTC Franchise New Product Launches Digital Footprint 20
Slide 22: North America – sustained presence with diversified portfolio
North America – sustained presence backed by a well diversified portfolio Outperformed US gx and ~80% of product marketed are in Well diversified portfolio branded market in last 4 years Top 3 Growth Rate (Branded+Gx)1 FY22 Revenue Revenue Contribution1 ~ $408 mn Of the 141 marketed Products: 16% 16
Slide 23: North America – calibrated approach to growth
North America – calibrated approach to growth through differentiated launches FY24e FY25e FY26e FY27e Monroe Injectable Portfolio 8-10 products with market size of $2+ billion Drug Device Combinations Key Launches 2-3 products with market size of $900+ mn Generic Respiratory Portfolio 3-4 products w
Slide 24: Europe – one of the fastest growing regions
Europe – one of the fastest growing regions for Glenmark Glenmark Europe covers 4 out of One of the fastest growing Increasing share of branded in the 6 major markets directly regions with 10%+ CAGR the overall product mix Glenmark Presence Revenue (₹ mn) Generic vs. Branded (FY22)1 3rd Party busine
Slide 25: Europe – key growth drivers
Europe – therapy area focus and market expansion will be key growth drivers Respiratory Profitability Continue to gain market share in Increase profitability through the core Respiratory brands continous portfolio optimization launched across Europe Market Expansion Significantly improve EBITD
Slide 26: Rest of World – fast growing branded market
Rest of World – fast growing branded market with high returns Key highlights across all regions Strong growth tailwinds across regions Russia + CIS Asia • Overall market opportunity in key countries: • Overall market opportunity in key countries: Revenue (₹ mn) $8-10 bn1 $8-10 bn1 +9% • Glenmark gro
Slide 27: Rest of World – target 20%+ CAGR over next four years
Rest of World – target growth of 20%+ CAGR over the next four years Continue efforts across markets to launch strong, regional brands Brand Building Increase strategic partnerships Continue to gain share through with local companies to in-license differentiated products in select / out-license key p
Slide 28: From now on …ichnos…
From now on …ichnos… Cyril Konto, MD President and CEO Ichnos Sciences, Inc. 27
Slide 29: Glenmark Investor Day – Ichnos
GLENMARK INVESTOR DAY November 17th, 2022 Cyril Konto, MD Chief Executive Officer NOVEMBER 17, 2022
Slide 30: Our Mission and Vision
Our Mission: To provide curative therapies that extend and improve lives of cancer patients. Our Vision: We dare to imagine a world where cure is possible. GLENMARK INVESTOR DAY NOVEMBER NOVEMBER 17,17, 2022 2022 29
Slide 31: Ichnos Sciences overview and BEAT Platform
1 Proprietary BEAT ® Platform Development of Full-Length Multispecific Therapeutic Antibodies 2 Clinical-Stage Oncology Assets ISB 1342 (CD38xCD3) BEAT 1.0 Bispecific ISB 1442 (CD38xCD47) BEAT 2.0 Biparatopic Bispecific 2 Autoimmune Assets for Partnering ISB 880 IL-1RAP Antagonist in Phase 1, Licens
Slide 32: BEAT Enables Production of Multispecific Antibodies
BEAT® Enables Production of Multispecific Antibodies with Competitive Developability Properties BEAT® 1.0 BEAT® 2.0 (2+1) TRISPECIFIC(TREAT™) Fab scFv ISB 1342 ISB 1442 ISB 2001 • Versatile and quick to engineer Enables design and development of bi/multispecific antibodies that unlock new biology •
Slide 33: Strategy Starts with a Validated Target in Multiple Myeloma
Strategy Starts with a Validated Target in Multiple Myeloma, Then Expands T-Cell Myeloid and Bispecific T-Cell Multispecific Engager Multispecific Engagers Engagers Multiple Hematologic Solid Tumors Myeloma Malignancies ISB 1342, a CD38 x CD3 ISB 1442, a first-in-class CD38 x CD47 2+1 ISB 2004, BEAT
Slide 34: Diversity of Immune Cell Engagement and Indications
Diversity of Immune Cell Engagement and Indications Across Hematologic and Solid Tumors ASSET / LAUNCH DESCRIPTION PRECLINICAL PHASE 1 PHASE 2 PHASE 3 STATUS / (CY, US) NEXT MILESTONE Products PHASE 1 ISB 1342 CD38 x CD3 BEAT® 1.0 ORPHAN DRUG Multiple Myeloma; T-ALL under consideration Multiple Myel
Slide 35: Accelerate Development Through Licensing and Partnerships
Accelerate Oncology Assets and Platform Development Through Licensing and Partnerships Out-Licensing AI and Non-Core Oncology BEAT ® Platform Asset or BEAT Platform Deal Types: Partnerships Partnerships Asset Level • Co-development (shared costs) • Out-licensing • Global rights • Regional rights All
Slide 36: Unmet Market Needs and Commercial Environment
Unmet Market Needs and Commercial Environment Multiple Myeloma Acute Myeloid Leukemia UNMET NEEDS UNMET NEEDS Poor Outcome for Triple Refractory Patients1: • 2/3 patients will go into remission, but 1/2 will relapse2 • 31% Overall Response Rate with subsequent • Options for 2L treatment are not view
Slide 37: ISB 1342 (CD38 x CD3) Bispecific Antibody
ISB 1342 (CD38 x CD3) Bispecific Antibody: Potential First-in-Class Therapy in Relapsed/Refractory Multiple Myeloma ISB 1342 (CD38 x CD3) BEAT ® bispecific antibody 1.0 KEY ATTRIBUTES • CD38 is expressed on the surface of multiple myeloma cells and is a validated target • ISB 1342 is a bispecific an
Slide 38: ISB 1342 Demonstrates Superior Potency to Daratumumab
ISB 1342 Demonstrates Superior Potency to Daratumumab In Vitro and Improved Tumor Growth Inhibition In Vivo ISB 1342 Potency Maintained in Tumor Cells Tumor Growth Inhibition 1300 Across Levels of CD38 Expression 1200 100 ns ✱✱ ✱✱✱✱ Tumor volume (mm3 mean +/- SEM) 1100 Target cell killing EC50 1000
Slide 39: ISB 1342 Dose Escalation and Expansion Study
Dose Escalation and Expansion Study Ongoing at Major Cancer Centers in US and France ISB 1342-101 Study in Triple Refractory Patients with R/R MM Part 1 Further Development Phase 3 Confirmatory Studies 3+3 Dose Escalation Part 2 Dose Expansion IV Cohort X • Pivotal single arm Phase 2 study Proof-of-
Slide 40: ISB 1442 Redirects Myeloid Cells to CD38+ Tumors
ISB 1442 Redirects Myeloid Cells to CD38+ Tumors and Overcomes Mechanisms of Resistance to Daratumumab ISB 1442 (CD38 x CD47) BEAT® biparatopic bispecific antibody 2.0 KEY ATTRIBUTES • Dual binding to CD38 and CD47 epitopes, increasing avidity relative to daratumumab • Two Fab regions drive binding
Slide 41: ISB 1442 Shows Superior Tumor Cell Killing
ISB 1442 Shows Superior Tumor Cell Killing Compared to Magrolimab and Daratumumab Monotherapies or Combination Higher Killing Compared Higher Killing Compared to Blocks CD47/SIRPα Interactions to Anti-CD47 (5F9) and Combination of Anti-CD47 Daratumumab Monotherapy (5F9) and Daratumumab CD38high (Dau
Slide 42: ISB 1442 Reduces Potential for Red Blood Cell Depletion
ISB 1442 Only Binds to CD47 After Engaging CD38, Reducing Potential For On-Target, Off-Tumor Depletion of Red Blood Cells Reduced Binding to RBC Minimal RBC Depletion Antibody binding (GeoRFI) Anti-CD47 mAb (5F9) 1.5×10 4 ISB 1442 % RBC vs baseline *** ns ISB 1442 **** 100 * ** **** **** **** **** a
Slide 43: ISB 1442: Phase 1/2 Study in Multiple Myeloma and AML
ISB 1442: Phase 1/2 Study in Multiple Myeloma Followed by Acute Myeloid Leukemia Phase 1 Dose Escalation Phase 2 RP2D-MM Weekly SQ Dosing Relapsed/Refractory Multiple Myeloma Standard Titration Pivotal Monotherapy 3+3 Cohort Multiple Myeloma Combination Studies Accelerated Titration Single Patient C
Slide 44: ISB 2001 is First TREAT Trispecific Antibody
ISB 2001 is First TREATTM Trispecific Antibody For Relapsed/ Refractory Multiple Myeloma ISB 2001 (BCMA x CD38 x CD3)trispecific antibody TREATTM KEY ATTRIBUTES • BCMA and CD38 are expressed on the surface of multiple myeloma cells and are clinically validated targets • ISB 2001 combines three propr
Slide 45: ASH 2022 Presence
ASH 2022 Presence: Second Consecutive Oral Presentation, Three Posters and a Booth Title Presenter Type Date Time (CT) ISB 2001, a First-in-Class Trispecific BCMA and CD38 T Cell Presentation Time: Engager Designed to Overcome Mechanisms of Escape Saturday 5:00 PM Mario Perro, PhD Oral from Treatmen
Slide 46: Summary of Key Assets and Inflection Points
Summary of Key Assets and Inflection Points ISB 1342 ISB 1442 ISB 2001 CD38 X CD3 BEAT® CD38 X CD47 BEAT® BCMA X CD38 X CD3 TREATTM Mechanism TRISPECIFIC ANTIBODY BISPECIFIC ANTIBODY BIPARATOPIC BISPECIFIC ANTIBODY Target Multiple Myeloma Multiple Myeloma and Multiple Myeloma Indication(s) Acute Mye
Slide 47: Key Inflection Points in Calendar Year 2023 and Beyond
Ichnos is Poised to Hit Key Inflection Points in Calendar Year 2023 and Beyond Ph.1 POC in ISB 1342 RP2D R/R MM Initiate Ph1 in Ph. 1 POC in Initiate Ph1 in Initiate Ph2a in ISB 1442 R/R MM R/R MM R/R AML R/R MM & AML File Initiate Ph1 in Ph1 POC in ISB 2001 Pre-IND/CMC activities IND R/R MM R/R MM
Slide 48: Key Priorities Before March 2023
Key Priorities Before March 2023 Proof-of-Concept CTN/IND Close One Target ISB 1342 and/or Filing Oncology $5MM Monthly ISB 1442 ISB 2001 Partnership Burn Rate GLENMARK INVESTOR DAY NOVEMBER 17, 2022 47
Slide 49: Resilient Financials at an Inflection Point
Resilient Financials at an Inflection Point VS Mani Executive Director and Global CFO Glenmark Pharmaceuticals Ltd. 48
Slide 50: Strengthening the balance sheet
Enabling a resilient global business by strengthening the balance sheet SG&A Operational NME / NBE operations Excellence program to spin-off to form Ichnos optimize Other Expenses IPO of Glenmark Life Sciences (~340 bps reduction from FY19-22) Sciences, Inc. FY19 FY20 FY21 FY22 API business spin-off
Slide 51: Overall R&D investments right-sized in last four years
Overall R&D investments have been right-sized in the last four years R&D Investment (₹ mn) and R&D as % of Revenue Innovation R&D Core Business R&D 13.2% 10.1% Core Business R&D spend sustaining at ~5% of revenue across last four years 12,980 12,390 Spend on Ichnos optimized from ~$125 mn to 5% ~$85
Slide 52: Significant rationalization in capital expenditure
Significant rationalization in capital expenditure in the last four years Capital expenditure (₹ mn) Tangible Spend Intangible Spend -36% Investments in Monroe being key driver for high 12,372 tangible asset spend in earlier years 6,572 Intangible spend reduced by ~70% to ₹ 1,781 mn 7,901 in FY22 To
Slide 53: Improving operational efficiency and return ratios
Continuous focus to improve operational efficiency and return ratios Net Working Capital1 FY22 (# of days) FAT2 (Fixed Net Asset Turnover) ROCE (%)4,5 -25% 130 3.2 3.0 16.9% 98 15.1% Peers Average3 Glenmark FY19 FY22 FY19 FY22 Current under-utilization at ROCE improvement on account of Net working c
Slide 54: Glenmark's growth roadmap and key priorities
Glenmark’s growth roadmap and key priorities 10-12% CAGR 8.5-9% from FY24 23% Revenue growth target Consolidated R&D investment EBITDA margin target over the next four years as % of revenue by FY27 Reducing GPL investment into Ichnos to ~$60 mn in FY24 ₹ 7,000 mn Zero Net Debt by FY26 22% Annual cap
Slide 55: Thank You
Thank You https://glenmarkpharma.com/
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