Syngene International Ltd. · NSE:SYNGENE
Syngene International — Investor Presentation (December 2016)
31 slides from Syngene International's investor presentation, December 2016
Slide 1: Investor Presentation
Investor Presentation December 2016 Strictly confidential & privileged
Slide 2: Safe Harbour
Safe Harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 3: Introduction
Introduction Putting Science to Work
Slide 4: Introduction
Introduction The Biocon Group Syngene’s Shareholding Pattern1 Services Based Contract Discovery Syngene ESOP 2.4% Contract Development Contract Manufacturing Promoter 74.5% Public Product Based 23.1% Silver leaf : 7.2% Biosimilars Others: 15.9% Formulations and Compounds Alternative
Slide 5: Overview
Overview o Established in 1994 as India’s first Contract Research Organization – 22+ years of unparalleled experience in novel molecule discovery & development services o Integrated Service Platform for small & large molecules including Antibody-drug conjugates and oligonucleotides o World class Inf
Slide 6: Recent Business Highlights
Recent Business Highlights All figures in INR Mn unless otherwise specified All our three verticals performing as expected. P&L Summary Q3 FY17 Q3 FY16 YoY Change Revenue 3,467 2,807 23% Signed a strategic collaboration with Amgen Inc for EBITDA 1,274 1,036 23% setting up a dedicated R&D center
Slide 7: Journey Over the Years
Journey Over the Years 20,000 sq. ft facility 1.3 million sq. ft facility Infrastructure 100+ 3,400+ People - Chemistry - Preliminary biology - End-to-End discovery, development and manufacturing capabilities Capabilities $5 million $178 million Investment 7 * For the nine months ended December 31,
Slide 8: Who We Are Today: A Global High Growth CRO Company
Who We Are Today: A Global High Growth CRO Company One of the leading India-based CROs Strong Growth and Profitability Integrated discovery and development platform Focus on novel molecular entities 11,131 256(1) clients across multiple sectors 8,716 7,077 95%(1) of revenues from outside India 5,542
Slide 9: Who we are and what we do
Putting Science to Work Who we are and what we do Combining world class research talent and infrastructure with the Indian cost advantage Converting R&D to a variable cost for clients Moving beyond cost arbitrage to R&D productivity and innovation Key Differentiators of Growth Scalable Predict
Slide 10: Our Industry
Our Industry Putting Science to Work
Slide 11: Global Pharma R&D Trends
Global Pharma R&D Trends Large and growing addressable market Industry Statistics Global R&D expenditure expected to increase from (US$ bn) $139bn in 2014 to $152bn in 2018 (CAGR of 2.3%) Global R&D Spending Global CRO Market(1) 75% of R&D spend can be potentially outsourced Increasing per u
Slide 12: Global CRO Market: Over US$43bn and Growing
Global CRO Market: Over US$43bn and Growing Outsourcing Market by Stage of DD Continuum Significant Growth in APAC (US$bn) Global NME Discovery Outsourcing Market (US$bn) 67.2 22.7 15.2 43.4 14.7 15.2 9.2 24.7 15.8 4.6 10.5 3.8 22.7 7.5 14.7 4.2 2014 2018 2014 2018 Discovery Preclinical Clinical (Ph
Slide 13: Business Overview
Business Overview Putting Science to Work
Slide 14: The Drug Discovery Continuum
The Drug Discovery Continuum Discovery Development Commercialisation Pre- clinical Clinical Target Lead Product Animal Ph Ph Ph Drug filing launch Identification Generation with FDA & Lead Safety I II III other global Selection regulatory Target Target API and Drug product authorities Marketing/ Dev
Slide 15: Fully Integrated Services Platform
Fully Integrated Services Platform… Discovery Development Manufacturing Drug Substance Chemistry Development Clinical Supplies Small Molecules Drug Product Development Biology Integrated Drug Substance – Specialty Molecules Drug Product Integrated drug discovery Clinical Services (India) Commercial
Slide 16: With Multiple Entry Points
…With Multiple Entry Points Discovery Development Commercialisation Pre- clinical Clinical Target Lead Product Animal Ph Ph Ph Drug filing launch Identification Generation with FDA & Lead Safety I II III other global Selection regulatory Target Target API and Drug product authorities Marketing/ Deve
Slide 17: Integrated Platform to Build Strategic Relationships
Integrated Platform to Build Strategic Relationships Customer Focus Cost Arbitrage R&D Productivity Innovation Multiple Services Dedicated Play Integrated Play Capabilities/ Complexity Cluster Plays Component Plays Single Service Small/Short Term Scale/Predictability Larger/Long Term 17 Putting Scie
Slide 18: Verticals Overview
Verticals Overview Dedicated centers Discovery Services Development & • Integrated Services • Discovery Chemistry, Discovery Manufacturing Services • Dedicated Infrastructure Biology and in-vivo services • Preclinical studies, Stability, customized for client’s • Multi-client infrastructure formulat
Slide 19: Dedicated Centres: Long term relationships
Dedicated Centres: Long term relationships Largest R&D Centre in Asia for BMS Dedicated research centre in India for Abbott Nutrition’s 1st R&D centre in Exclusive R&D Centre for Amgen Inc. in (2009). Contract extended till 2020. Baxter (2013). India set up in collaboration with India (2016). Syngen
Slide 20: Discovery Services: From Target to a Drug Candidate
Discovery Services: From Target to a Drug Candidate Candidate Hit to Lead Lead Optimization Development Selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox & Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused C
Slide 21: Development Services
Development Services Encompass activities across multiple disciplines as a molecule moves from pre-clinical to clinical trials Preclinical Clinical Key activities include: Studies Studies Drug o Drug substance development (process r&d and product Dvpt. optimization) Drug Substance o Drug product
Slide 22: Manufacturing Services
Manufacturing Services Small • A State-of-the-art cGMP facility to Manufacture NCEs Molecules • Designed to support multi gram to 100s of kgs/ batch of Intermediates, & APIs for Clinical Trials; Current capacity can support initial commercial supplies • New greenfield investment being made in Mangal
Slide 23: Multiple Layers of Growth
Multiple Layers of Growth Expand/Extend existing clients Capacity Expansion - High service integration - Consistent expansion - Dedicated centres model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Customer Capacity dedicated per
Slide 24: Financial Highlights
Financial Highlights Putting Science to Work
Slide 25: Q3 FY17 Financial Highlights
Q3 FY17 Financial Highlights All figures in INR Mn unless otherwise specified Particulars Q3 FY17 Q3 FY16 YoY Change Revenue 3,467 2,807 23% Material & Power costs 977 900 9% Employee costs 801 603 33% Gross Margin 1,689 1,304 30% Gross Margin (%) 49% 46% Other Expenses 415 268 55% EBITDA 1,274 1,03
Slide 26: 9M FY17 Financial Highlights
9M FY17 Financial Highlights All figures in INR Mn unless otherwise specified Particulars 9M FY17 9M FY16 YoY Change Balance Sheet Highlights Revenue 9,564 7,789 23% Material & Power costs 2,639 2,411 9% As on 31st December 2016 Employee costs 2,307 1,749 32% Shareholders’ funds 12,854 Gross Margin
Slide 27: Strong Track Record Of Topline Growth
Strong Track Record Of Topline Growth… Growth driven by increase in sales from Total Revenue (INR Mn) existing clients and acquisition of new clients “Engage, expand and extend” strategy to 11,133 extend client relationship over a longer period 9,564 of time 8,716 7,077 Growth in total number
Slide 28: With Best-in-Class Profitability
…With Best-in-Class Profitability Operating Margin (EBITDA) Profit After Tax Margin (Net Income) 22% 22% 20% 19% 37% 17% 18% 35% 34% 34% 31% 30% 2,089 3,540 727 976 1,339 1,750 2,408 1,404 1,682 2,217 2,928 3,867 FY2012 FY2013 FY2014 FY2015 FY2016 9M FY2017 FY2012 FY2013 FY2014 FY2015 FY2016 9M FY20
Slide 29: Capital Expenditure
Capital Expenditure Historical Capital Investments – Average Gross Block (INR Mn) Planned Capital Expenditure Expansion Capex of US$200 million envisaged over FY16 to FY19 10,169 8,255 5,610 6,149 6,819 Future funding requirements to be met through internal accruals & debt Capex investment area
Slide 30: Managing Risks
Managing Risks Risk Mitigation Client growth and sustained retention Proactive client engagement and sustained quality Comprehensive hedging policy and tracking mechanism Currency fluctuation (USD/INR) in place Significant capex investment over next few years Staggered investments in line with busin
Slide 31: THANK YOU
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • IR Contact : Chanderlekha Nayar +91 80 6775 8821 Chanderlekha.nayar@syngeneintl.com
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