Natco Pharma Limited · NSE:NATCOPHARM
Natco Pharma — Q2 FY2019 Earnings Presentation
19 slides from Natco Pharma's earnings presentation, November 2018
Slide 1: Investor Presentation Q2 FY19
INVESTOR PRESENTATION Q2 FY19, November 2018
Slide 2: Disclaimer / Important Disclosure
Disclaimer / Important Disclosure THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF NATCO PHARMA LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background
Slide 3: Natco Pharma at a Glance
Natco Pharma at a Glance Vertically integrated pharmaceutical company with presence across geographies – India, US and RoW Strong brand position in the domestic Oncology and Hepatitis – C (‘Hep-C’) segments ─ Portfolio of brands catering to various oncology diseases including breast, brain, bone
Slide 4: Track Record of Consistent Growth
Track Record of Consistent Growth Strong Revenue(1) Growth… Ownership Structure(3) INRmn 22,424 20,789 10,897 7,556 8,402 Promoters , Public, 48.38% 51.62% FY2014 FY2015 FY2016 FY2017 FY2018 …And Robust EBITDA and PAT(2) Margins EBITDA 26% 25% 26% 34% 43% INRmn 9,688 Natco Pharma’s Stock Performance
Slide 5: Key Business Segments
Key Business Segments Formulations API Others Domestic International (Domestic & Exports) Strong brand position in the Focused on complex generics for Strategically important division Operations in Brazil, Canada, domestic oncology and Hepatitis- the US Singapore and Australia Vertical int
Slide 6: US Market - Focus on Complex Generics
US Market - Focus on Complex Generics US FDF product portfolio is predominantly focused on high-barrier-to-entry products that are typically characterised by one or more of the following: - Intricate chemistry - Challenging delivery mechanism - Difficult or complex manufacturing process - May face c
Slide 7: Strong Growth in Domestic Formulations Business
Strong Growth in Domestic Formulations Business Domestic Formulation Sales(1): Market Leading Growth Domestic Product Launches Therapeutic Brand Molecule Dosage Form Segment INRmn Alphalan Melphalan Injection Oncology Carfilnat Carfilzomib Injection Oncology Pomalid Pomalidomide Capsules Oncology FY
Slide 8: Strong Market Position in Domestic Oncology Segment
Strong Market Position in Domestic Oncology Segment Oncology Division Overview Oncology Revenue – Gross (INRmn) Entered the segment with launch of generic version of Imatinib in 2003 Portfolio of well recognized brands – 6 brands with INR 100mn+ sales in 3,224 3,335 the oncology segment 2,526
Slide 9: Pharma Specialties
Pharma Specialties Launched generic Sofosbuvir and its combinations for the treatment of Hep-C in India & Nepal under its brand Gastro Hepatology – Hepcinat & Hepcinat LP Leading Market Non-exclusive licensing agreement with Gilead Sciences for 105 countries including India Position in Hep-C L
Slide 10: Expanding Domestic Presence with CnD Division
Expanding Domestic Presence with CnD Division Cardiology and Diabetology Launched Cardiology and Diabetology (CnD) division in early 2017 First to launch Argatroban injection and Dabigatran in India for treatment of patients with thrombosis syndrome Focus will be on niche molecules with high b
Slide 11: Expanding RoW Presence
Expanding RoW Presence Focus on Canada, Brazil and other RoW markets Canada Hep-C driven markets Launched Oseltamivir (generic drug Received approvals and import permits for of Tamiflu) (30mg, 45mg, 75mg) 14 countries(1) 13 approvals Asia Pacific Successful listings in major provinces (Inclu
Slide 12: In-House API Development with Vertical Integration
In-House API Development with Vertical Integration for Key Formulation Products Mekaguda Facility Chennai Facility Strategically important business – develops APIs primarily for captive consumption of its FDF portfolio as well as third party sales Portfolio of 42 US DMFs(1) with with niche produ
Slide 13: Research & Development Capabilities
Research & Development Capabilities R&D capabilities demonstrated by its complex and niche product filings in formulations and API segments Two research facilities with capabilities across synthetic chemistry, biotech & fermentation, nano 29 ANDAs Approved(2) pharmaceuticals, new drug discovery &
Slide 14: Commitment to Manufacturing Excellence with a Culture of Quality
Commitment to Manufacturing Excellence with a Culture of Quality and Compliance International Markets Formulations Kothur Facility Visakhapatnam Facility Capability Tablets, Capsules, Pellets, Injectables Cytotoxic & other Oral Solid Dosages Key Regulatory GMP, USFDA, German Health Authority,
Slide 15: Experienced Management
Experienced Management Mr. V.C Nannapaneni Holds Masters degree in Pharmaceutical Administration from the Long Island University,USA Chairman and Managing Director Over 4 decades of experience in the pharmaceutical industry Mr. Rajeev Nannapaneni Holds bachelors degree in Quantitative Economic
Slide 16: Natco's Near and Long-Term Goals
Natco’s Near and Long-Term Goals Domestic Branded Formulations Complex Generics & Export Markets Maintain leadership position in Oncology and Focus on growth in key subsidiaries of Canada & Hepatitis-C segment Brazil Near-term Strategies Intensify the focus of CnD pipeline for niche Intensif
Slide 17: Demonstrated Track Record of Topline and Earnings Growth
Demonstrated Track Record of Topline and Earnings Growth FY2014 and FY2015 numbers have been prepared under IGAAP, whereas FY2016 and FY2017 numbers have been prepared under Ind AS Total Gross Revenue(1) (INRmn) EBITDA (INRmn) and EBITDA Margin (%) 25.9% 25.4% 25.9% 33.5% 43.2% 20,789 22,424 10,897
Slide 18: Historical Financials
Historical Financials Consolidated Profit & Loss Statement (INRmn) Consolidated Balance Sheet (INRmn) Particulars 31-March-2018 31-March-2017 Particulars 31-March-2018 31-March-2017 Revenue ASSETS Revenue from operations (Refer note 5) 22,020 20,650 Non-current assets Other income 404 139 (a) Proper
Slide 19: Historical Financials (contd.)
Historical Financials (contd.) Segmental Breakdown (INR Mn) Consolidated Financial Results (INRMn) Revenue Division Q2 FY19 FY18 Q2FY18 FY17 Q2FY19 FY18 Q2 FY18 FY17 API, Domestic 61.9 355.3 118.2 512.2 Total Revenues 5,835 22,424 4322 20,789 API, Exports 606.1 2,498.6 465.5 1,325.5 API Gross Revenu