Slide 1: Biocon: metamorphosis into a new age drug company
Bs Biocon metamorphosis into a new age drug company
Slide 2: Forward-looking statements
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. Important f
Slide 3: Vision: leadership and excellence 1978-1994
BS Biocon VISION 1978 \ BIOTECHNOLOGY y) 1979 ENZYMES » 1989 FERMENTATION ) 1994 \ CUSTOM RESEARCH ) LEADERSHIP & EXCELLENCE - India’s first & No 1 Biotech company with a global Biotech ranking of 16* - Global leadership in specialty enzymes - Globally unique fermentation profile - Solid State, Subm
Slide 4: Vision: leadership and excellence 1998-2003
$ Biocon VISION 1998 STATINS » 2000 CLINICALRESEARCH 2002 INSULIN ANTIBODIES & \ 2003 CANCER VACCINES LEADERSHIP & EXCELLENCE - India’s largest and only USFDA qualified producer and exporter of Statins - CLINIGENE: India’s first CAP accredited Clinical Laboratory - The most clinically validated r-hu
Slide 5: Billion Dollar market cap on first day of listing
$ Biocon Billion Dollar market cap on first day of listing Biocon in Top 20 Global Biotech Companies* Biocon in India's Top 5 Life Science Companies*
Slide 6: Global biotech companies comparison
OANODABRWN = = oO Company Amgen Inc Genentech Serono Chiron Corporation Applied BioSystems Genzyme Corporation Medimmune Novozymes Gilead Sciences Biovail Corp Biogen Idec Inc Millennium Pharmaceuticals Genencor International Sepracor Affymetrix Netkar Celera Genomics ImClone Systems Inc Exelixis In
Slide 7: Pharmaceutical Industry Comparison
Pharmaceutical Industry Comparison Current Mcap Company | Price | Rsm = USDm Ranbaxy 963 178,753 3,909 Cipla 227 68,040 1,488 Sun 353 65,466 1,432 Dr Reddy 746 57,053 1,248 Nicholas Piramal 754 28,654 625 Wockhardt 265 28,848 631 Cadila 423 26,564 581
Slide 8: Strategic pillars: fermentation platforms and innovation
$ Biocon 1. Building strong fermentation technology platforms 2. Leveraging technology for product differentiation 3. Creating long term value through quality & innovation 4. Charting an integrated development pathway for proprietary products
Slide 9: Delivering on a long term vision of proprietary products
Delivering on a long term vision of proprietary products New drug discovery & [ development c » Products with large global markets » Near term patent expiry » Fermentation derived . . molecules Biopharmaceuticals » High technology barriers » High regulatory barriers Generic Funding long term discove
Slide 10: Biologicals
Biologicals r-human Insulin Streptokinase GCSF Proprietary Molecules Antibodies h-R3 (anti-EGFR) Anti-CD6 & Anti-CD 3 Cancer Vaccines EGF, TGFa, HER; Small Molecules Statins Immunosuppressants Research yp Clinical Development »p Process Development yp Commercialization
Slide 11: Statins are the largest selling drugs in the world
$ Biocon + + + + Statins (anti-cholesterol) are the largest selling drugs in the world with global sales in excess of US$ 20bn The global generic market for Lovastatin, Pravastatin & Simvastatin is estimated at US$ 7bn in 2007 Biocon is the only USFDA approved producer of Lovastatin, Pravastatin & S
Slide 12: Biocon's leadership position in statins
$ Biocon “* Biocon’s leadership position in this segment is supported by USFDA & EDQM approvals Patented / non infringing processes Global-scale manufacturing facilities Significant market share in key markets where the products have gone off patent Tie-ups with a large number of Generic Companies
Slide 13: Insulin global market opportunity
$ Biocon “Global Sales of US$ 5 bn dominated by few players + Demand for Insulin expected to grow exponentially post approval of pulmonary Insulin (Pfizer's Exubera) + The USFDA has stated that products like Insulin and Human growth hormone whose science has progressed far enough for FDA to be able
Slide 14: Biocon positioned to access insulin opportunity
$ Biocon “Biocon is well poised to access this opportunity based on the following: - Long term supply agreement with Bristol-Myers Squibb - World class and Asia’s largest Insulin facility - Alliances with Generic Companies
Slide 15: Monoclonal antibodies market growth
$ Biocon “The market for monoclonal antibodies is expected to grow from US$ 4 bn in 2003 to US$ 13 bn by 2010 -[= Biocon is setting up Asia’s largest Monoclonal Antibody facility + The facility will manufacture hR3, an anti-EGF receptor antibody targeted against head & neck cancer as its first produ
Slide 16: hR3 clinical trials status
$ Biocon “The product has completed Phase II Clinical Trials in Canada and Phase II B Clinical Trials in India are expected to commence in Q2 FY 2004-05 “Proof of concept studies have indicated potential application in treatment of other cancers including brain cancer, lung cancer and breast cancer
Slide 17: Committed investment in new facilities
$ Biocon “Biocon has committed to invest approximately Rs 650 crores to establish the following: - Anew research facility for Syngene to double its current scientific strength - A large fermentation and synthesis facility that will quadruple existing Statins capacity - A Biologicals facility to unde
Slide 18: Competitive Environment
$ Biocon Competitive Environment Price pressure on Statins Commoditizing of Generics Potential competition in Insulin space Biocon’s Competitive Edge Technology Regulatory Compliance Global Scale Capacities Strong Product Pipeline that addresses a sequential flow of new fermentation based generics P
Slide 19: Competitive Environment
$ Biocon Competitive Environment Pace and Race for Drug Discovery is frenzied Increasing Costs of Drug Development Biocon’s Competitive Edge Monoclonal Antibodies and Cancer Vaccines are the most promising front runners in the approval pipeline Integrated Model provides speed and cost advantage
Slide 20: Financial Analysis FY 2003-04
qf Financial Analysis FY 2003-04
Slide 21: FY2004 financial highlights
$ Biocon + ++ ++ + + Revenues crosses Rs. 5 billion (Rs. 5.493 billion), - (94% fT ) Profits crosses Rs. 1 billion (Rs. 1.386 billion), - (219% ft) PAT Margins increase to 25%, - (10% f ) EPS (Post IPO Capital) @ Rs. 13.86 /share Maiden dividend of 20% recommended by Board Exports surge to 63%, - (1
Slide 22: FY2004 business highlights
$ Biocon + +++ + ++ Biocon signs agreement for supply of recombinant human insulin with BMS Biocon files DMF with USFDA for recombinant human insulin Biocon launches branded formulations in the domestic market for cardio diabetes U.S. FDA acceptance for Biocon’s statins and pioglitazone manufacturin
Slide 23: Revenues and Profit After Tax
$ Biocon Revenues") Profit After Tax?) (Rs. mm) 5,493 2,833 94% 219% 1,386 Ss FY03 FY04 FY03 FY04
Slide 24: Revenues by segment
$ Biocon (Rs. mm) 5,493 2,833 665 387 87 FY 03 FY 04 i Custom Research [Jj Enzymes [If Pharma {§ Other Income Total Growth rates: Custom Research - 39% t Enzymes - 25% t Pharma -117% t
Slide 25: Domestic and export revenues
3,395 1,461 2,011 1,355 FY 03 FY 04 i Domestic [i Exports International Business - 15% t
Slide 26: EBITDA and net margins
40% 33% 25% 30% 26% 20% 15% 10% 0% FY03 (- EBITDAMargin —»— NET Margin ) FY04 EBITDA and net margins have improved substantially due to @ Increased sales to regulated markets @ Process improvements
Slide 27: Financial Analysis Q1 2004-05
aa Financial Analysis Q1 2004-05
Slide 28: Q1 FY2005 operating highlights
$ Biocon “Successful market entry of Pravastatin in Europe post patent expiry in key markets in Europe Increased supply of Lovastatin to US post USFDA approval of additional statin facilities Increase in Syngene's research services
Slide 29: Q1 product portfolio expansion
$ Biocon “Product portfolio of BBPL expanded to include the following products: 1. h-T1, a humanized anti-CD6 targeting immuno-suppressive monoclonal antibody for T-cell Lymphoma, Rheumatoid Arthritis and Psoriasis. 2. q-T3, a chimeric anti-CD3 targeting immuno-suppressive monoclonal antibody for or
Slide 30: Q1 revenues by segment
1,779 Q1 FY 04 Q1 FY 05 GS Custom Research MMMEnzymes [Pharma Mil Other Income Ml Total
Slide 31: Segment dynamics
$ Biocon Dynamics Custom research 80% ©& Significant expansion of revenues from both existing & new customers Enzymes & Speciality Enzymes continue to generate significant interest in US & Europe Pharma Others & Introduction of Tacrolimus & Commencement of supply of Domestic Formulations & Backlog s
Slide 32: Q1 domestic and export revenues
1,128 Q1 FY 04 Q1 FY 05 [Domestic Exports
Slide 33: Q1 financial summary
(Rs. mm) Revenues EBDITA PBT PAT Q1 FY 04 1,076 352 305 229 % to Revenues 33 28 21 Q1 FY05 1,779 573 520 486 Profit Growth - 112% % to Revenues 32 29 27 - Improved Yields & Sales Mix - Growth in Personnel & Salary Increment - Exchange Loss & Increase in SG&A Exps - Profits from 100% EOUs not taxable
Slide 34: Thank You
Thank You