Syngene International Ltd. · NSE:SYNGENE
Syngene International — Investor Presentation (October 2017)
31 slides from Syngene International's investor presentation, October 2017
Slide 1: Investor Presentation
Investor Presentation October 2017 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: The Biocon Group and Shareholding Pattern
Introduction The Biocon Group Syngene’s Shareholding Pattern1 Services Based Syngene ESOP Contract Discovery 2.1% Contract Development Contract Manufacturing Promoter 74.5% Public Product Based 23.4% Biosimilars Formulations and Compounds Alternative Therapeutic Drugs 4 As of 31 st S
Slide 5: Overview
Overview Established in 1994 as India’s first Contract Research Organization – 23 years of unparalleled experience in novel molecule discovery & development services Integrated service platform for small & large molecules, antibody-drug conjugates and oligonucleotides World class infrastructur
Slide 6: Recent Business Highlights
Recent Business Highlights All figures in INR Mn unless otherwise specified Quarter Highlights: P&L Summary Q2 FY18 Q2 FY17 YoY Change Growth picks up in Q2FY18 on the back of growth in Chemical Revenue 3,516 3,193 10% Development and Dedicated R&D Center Verticals. EBITDA 1,299 1,219 7% Sustain
Slide 7: Journey Over the Years
Journey Over the Years 20,000 sq. ft facility 1.3 million sq. ft facility Infrastructure 100+ ~3,500 People - Chemistry - Preliminary biology - End-to-End discovery, development and manufacturing capabilities Capabilities $5 million $225 million Investment 7 * For the year ended March 31, 2017 Putti
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 12,716 11,133 293(1) clients across multiple sectors 8,716 96%(1) of revenues from outside India 7,07
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 $139bn (USD bn) 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 45 Increasing pe
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 (USD bn) Global NME Discovery Outsourcing Market (USD 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 (
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 Drug Product Development Specialty Molecules Biology Small Molecules Integrated Drug Substance – Drug Product Commercial Supplies Integrated drug discovery Clinical Services
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 formulation,
Slide 19: Dedicated Centres: Long term relationships
Dedicated Centres: Long term relationships Largest R&D Centre in Asia for Dedicated research centre Abbott Nutrition’s 1st R&D Exclusive R&D Centre for Amgen Herbalife first Nutrition Research BMS (2009). Contract in India for Baxter (2013). centre in India set up in Inc. in India (2016). and Develo
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 Studies Studies Key activities include: Drug product Drug substance development (process R&D and Drug Dvpt. Substance optimization) Dvpt. Viral Bi
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: Q2 & H1 FY18 Financial Highlights
Q2 & H1 FY18 Financial Highlights All figures in INR Mn unless otherwise specified Particulars Q2 FY18 Q2 FY17 YoY Change H1 FY18 H1 FY17 YoY Change Revenue 3,516 3,193 10% 6,599 6,097 8% Material & Power costs 879 869 1% 1,667 1,663 0.2% Employee costs 937 767 22% 1,797 1,506 19% Gross Margin 1,700
Slide 26: FY17 Financial Highlights
FY17 Financial Highlights All figures in INR Mn unless otherwise specified Particulars FY17 FY16 YoY Change Balance Sheet Highlights Revenue 12,716 11,133 14% Material & Power costs 3,522 3,412 3% As on 31st March 2017 Employee costs 3,086 2,493 24% Shareholders’ funds 14,131 Gross Margin 6,108 5,22
Slide 27: Strong Track Record Of Topline Growth
Strong Track Record Of Topline Growth… Total Revenue (INR Mn) Growth driven by increase in sales from existing clients and acquisition of new clients “Engage, expand and extend” strategy to extend 12,716 client relationship over a longer period of time 11,133 Growth in total number of clients
Slide 28: With Best-in-Class Profitability
…With Best-in-Class Profitability All figures in INR Mn unless otherwise specified Operating Margin (EBITDA) Profit After Tax Margin (Net Income) 23% 38% 22% 35% 20% 34% 19% 31% 4,782 18% 2,873 30% 3,866 2,408 2,928 1,750 2,217 1,339 1,682 976 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015
Slide 29: Capital Expenditure
Capital Expenditure Historical Capital Investments – Average Gross Block (INR Mn) Planned Capital Expenditure 12,063 Expansion Capex of US$200 million envisaged over FY16 to FY19 10,169 8,255 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 +91 725 919 2001 chanderlekha.nayar@syngeneintl.com
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