Unichem Laboratories Limited · NSE:UNICHEMLAB

Unichem Laboratories — Q4 FY2014 Earnings Presentation

49 slides from Unichem Laboratories's earnings presentation, May 2014

  1. Slide 1: Unichem Laboratories Limited Investor Presentation

    Unichem Laboratories Limited UNICHEM Investor Presentation May, 2014 ©Unichem Laboratories Ltd 1

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation may include certain forward-looking statements and information that involve risks, uncertainties and assumptions based on current expectations, within the meaning of applicable laws and regulations. Forward-looking statements are all statements that concern pl

  3. Slide 3: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3

  4. Slide 4: Profile

    Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 25th in the Domestic Formulations market as per AWACS MAT Mar, 2014 Amongst the top # 19 companies in representative (covered) market Domestic Operations contribute ~6

  5. Slide 5: History - Key Milestones

    History - Key Milestones Realignment of Chronic Care Portfolio (Last 10 Years) Re-location of R&D from Mumbai to USFDA Goa (CoE). Filings re-certification of commissioned USFDA Goa Plant & Expansion of from new R&D certification Roha Plant Packaging Centre of Goa Plant USFDA facility at Sale of Indo

  6. Slide 6: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6

  7. Slide 7: Unichem Consolidated Financials

    Unichem Consolidated Financials {Rs. Crores} Growing Steadily & Focus on Profitability 2011-12 2012-13 2008-09 2009-10 2010-11 2013-14 1,134 1,081 876 824 735 747 152 UNICHEM 177 158 129 188 181 Rev Ebitda Rev Ebitda Rev Ebitda Rev Ebitda Rev Ebitda Rev Ebitda EBITDA as % of Revenue 15.7% 17.3% * EB

  8. Slide 8: EBITDA Profile

    EBITDA Profile from FY 12 onwards 60 53 51 50 50 48 48 42 40 40 37 33 32 31 30 27 20 UNICHEM 16.5 17 18 20 17.3 17.2 19.1 18.6 18.2 14.3 15.3 10 13 0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 EBITDA INR Crs EBITDA Margin % EBITDA Margin in 2011-12 declined due to increa

  9. Slide 9: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 9

  10. Slide 10: The Indian Pharma Market

    The Indian Pharma Market Current Estimated Size of IPM (MAT Mar, 2014) is Rs. 75,588 Crores Market Growth MAT March – 6.1 % India ranks globally 3rd by volume and 12th by value Expected to rank 8th by value by 2016 UNICHEM Future growth projections vary from an optimistic 14% p.a. to tempered 12% p.

  11. Slide 11: Revenue & Business areas break-up FY 2012-13

    Revenue & Business areas break-up Consolidated – FY 2012-13 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 90 48 8% 4% 84 71 8% UNICHEM 6% 352 33% 637 201 59% 658 19% 61% 21 2% Formulation - Domestic API - Domestic Formulation - Exports API - Exports International Busin

  12. Slide 12: Revenue & Business areas break-up FY 2013-14

    Revenue & Business areas break-up Consolidated –FY 2013-14 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 141 56, 13% 5% 91 8% 153 14% UNICHEM 655 59% 393, 35% 685, 60% 51 5% 27 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets F

  13. Slide 13: Portfolio Scene: Therapy Dominance & Price Control

    Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy Major Revenue contributors: Chronic care accounts for ~61%* of Domestic Formulation Revenues Acute portfolio accounts for ~39%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control Appx 20% of Domestic Portfolio (in value

  14. Slide 14: Cash Generation – Pre R&D Expenses

    Cash Generation – Pre R & D Expenses Rs. Crores 08-09 09-10 10-11 11-12 12-13 13-14 Cumulative Positive Cash Flow 168.4 188.7 179.6 152.1 201.3 235.9* 1,126 Spending: R & D Expenditure 23.5 29.7 40.5 39.7 36.4 52.2 222 Capital Expenditure Investment in Subs UNICHEM 45.5 19.0 44.3 10.0 84.2 11.0 106.

  15. Slide 15: Unichem in The Indian Pharma Market

    Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT March, 2014 % Gth Total Size of the Market 75,588 6.1 Unichem Represented (Covered) Market 37,383 6.4 Sr. No Top Companies in Covered Market 1 Sun Pharma 2,111 14.9 2 Ranbaxy 1,971 9.9 3 4 5 Alkem Zydus Mankind UNICHEM 1

  16. Slide 16: Unichem's Therapy Gaps in the market

    Unichem’s Therapy Gaps in the market MAT Mar’ 14 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 37,750 49.9% 2,418 87.0% Unichem Represented Segments 37,838 50.1% 360 13.0% Total Market 75,588 100.0% 2,778 100.0% Unichem is represented

  17. Slide 17: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Chronic Therapies Specialist (7) Anti-Hypertensive & Anti- Cardiologists, CPs & GPs CVS-Life Anxiolytics Anti-Hypertensive, Statins & Anti-Anginal Cardiologists, Diabetologists, CVS-Star CPs & FPs Anti-Hypertensive, Statins, Diabetes mngmt Cardiologis

  18. Slide 18: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Acute Therapies Specialist (4) Anti-Infective & GPs, NGPs, CPs, Gastrointestinal, Anti- pediatrics, & UVA Pyritic & related products Gynecologists, Extra Urban/Urban Anti- Infective/Allergy Anti-Infective, Multi GPs, CPs, ENT, Dentists, & Gastro (2) V

  19. Slide 19: Domestic Business: Customer Coverage

    Domestic Business: Customer Coverage Penetration 7 Chronic Verticals manned by ~1600 + CBAs 4 Acute verticals manned by ~1200 + CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists, Psychiatrists, Nephrologists, Dermatologists, Gynae

  20. Slide 20: Domestic Formulations Business

    Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs160cr # 4 Brands in Top 300 brands – Losar, Losar H, Ampoxin & Unienzyme UNICHEM Anti- Diabetic, Musculo- 4% Others, 7% Skeletal, 4% In

  21. Slide 21: Brand Building – Focus Brand Portfolio

    Brand Building – Focus Brand Portfolio # Top 10 Brands contributes nearly 50% of the company’s domestic revenues – Losar H, Losar, Ampoxin, Unienzyme, Trika, Vizylac, Linox, Serta, Telsar and Unistar – – # # UNICHEM # 50 Brands contributes ~82% of the company’s domestic revenues 4 - Rs. 50 +crore br

  22. Slide 22: Top Product Groups Performance

    Top 10 Product Groups Performance Rs. Crores % MAT Mar, % % Market Contribution 2014 Growth Share to Revenue Total Revenue 771 6.4 1.0 100 Losar Group 162 (4.6) 33.3 21.0 Ampoxin Group 64 4.4 44.5 8.3 Unienzyme Telsar Group Trika Group UNICHEM 53 45 32 21.5 9.6 (11.8) 16.8 4.2 20.9 6.8 5.8 4.1 Olsar

  23. Slide 23: AWACS Data – MAT Mar, 2014

    AWACS Data – MAT Mar, 2014 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 6,055 8.5 351 5.8 2.7 Anti-Infectives UNICHEM 9,390 (0.3) 129 1.4 15.5 Neuro-Psychiatry 2,526 7.4 95 3.7 5.2 Gastroenterologicals 4,617 3

  24. Slide 24: AWACS Data Quarterly Sales & MAT

    AWACS Data Quarterly Sales & MAT- Mar, 2014 Market Size Value Growth Value Growth Indicators Unichem (Crs) (Crs) (%) (%) MAT March’ 14 75,588 6.1 771 6.4 Q1 FY 14 18,426 8.3 184 6.0 Q2 FY 14 UNICHEM 19,357 3.2 187 0.1 Q3 FY 14 19,028 4.9 203 11.9 Q4 FY 14 18,228 6.6 190 4.8 Q1 FY 13 17,016 16.9 174

  25. Slide 25: Globally Accredited State of the art Manufacturing Facilities

    Globally Accredited State of the art Manufacturing Facilities Formulations – Baddi (HP) – essentially catering to domestic market Regulatory approvals - MHRA, MCC, ANVISA and WHO – Ghaziabad (UP) – for catering to regulated and developing regulated markets Regulatory approvals - USFDA, ANVISA, MHRA,

  26. Slide 26: Domestic Market – Management Focus

    Domestic Market – Management Focus Domestic Market – Entry into unrepresented / uncovered market segments Entered Hospital and Gynecology segments in 2011-12. Currently focusing on portfolio augmentation for enhanced coverage – Enhancing relationship with customers and Focus on Field Productivity –

  27. Slide 27: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 27

  28. Slide 28: International Business

    International Business Company has made significant investments in building infrastructure which includes new R&D centre and API plants for captive consumption to support international business Company is in process of further augmenting it API & Formulation capacities for expected future growth Reg

  29. Slide 29: International Business – Formulations: Emerging Markets

    International Business – Formulations Zone 1 : Emerging Global Markets Alliances in place for distribution and marketing of branded generics Geographic Mix – FY 2012-13 – In SAARC countries, S.E Asia, Baltic Republics, CIS, Central Asian Republics, Africa and the Middle east South East, 36% Africa,

  30. Slide 30: International Business – Formulations: Regulated Markets

    International Business – Formulations Regulated Markets Geographic Mix – FY 2012-13 Geographic Mix – FY 2013-14 US / Canada - 34 % UNICHEM Europe- 27 % US / Canada - 51% Europe - 15% Niche - 34% Niche - 39 % ©Unichem Laboratories Ltd 30

  31. Slide 31: Regulated Markets - USA and LATAM

    International Business – Formulations Regulated Markets - USA and LATAM UINITED STATES: UNICHEM PHARMACEUTICALS (USA) Inc - wholly owned subsidiary to manage ANDA filings and Business Development Business model is based on leveraging Unichem’s technical expertise and production capability with integ

  32. Slide 32: Regulated Markets - Europe

    International Business – Formulations Regulated Markets EUROPE European presence through 100% subsidiary - Niche Generics, UK The subsidiary identifies products for development, recommends these products to Unichem for development. In the later stages of development the subsidiary sells these regula

  33. Slide 33: International Market – Management Focus

    International Market – Management Focus United States – Develop long term relationships with local partners – Finalize tie-ups for launching ANDA approved products – More ANDAs filings and approvals – Capitalize end-to-end value chain – Forge relationship with Innovators to become building blocks in

  34. Slide 34: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 34

  35. Slide 35: API - World class Manufacturing Facilities and Infrastructure

    API-World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multiple plants Regulatory Approvals – USFDA, EDQM, and TGA UNICHEM Pithampur (MP) – Multiple plants Regulatory Approvals – USFDA, EUGMP ©Unichem Laboratories Ltd 35

  36. Slide 36: Key APIs

    Key APIs Sr. Canadian EDMF / Japanese Technical Current Product List Therapeutic Uses US DMF COS No DMF ASMF DMF Package 1 Alfuzosin Hydrochloride Alphablocker 2 Amlodipine Besylate Anti Hypertensive 3 Amlodipine Maleate Anti Hypertensive 4 Aripiprazole Antipsychotic 5 Bendroflumethiazide Anti Hyper

  37. Slide 37: Key APIs

    Key APIs Sr. Canadian Japanese Technical Current Product List Therapeutic Uses US DMF EDMF COS No DMF DMF Package 17 Losartan Potassium Anti Hypertensive ◘ 18 Meloxicam COX II Inhibitor * NMDA Receptor 19 Memantine Hydrochloride Antagonist, Alzheimer’s disease Anti Protozoal / Anti 20 Metronidazone

  38. Slide 38: Key APIs (Under Development)

    Key APIs (Under Development) Sr. No Current Product List Therapeutic Uses US DMF EDMF Technical Package 1 Atomoxetine Hydrochloride Noradrenaline Reuptake Inhibitor ** ** ** 2 Bepotastine Benzene Sulphonate Antihistamine ** ** ** 3 Bimatoprost Ant-Glaucoma ** ** ** 4 Brinzolamide Carbonic Anhydrase

  39. Slide 39: API - Total Revenue

    API - Total Revenue F Y 2012 - 13 F Y 2013 - 14 Revenue Break-up by Segment Revenue Break-up by Segment Domestic 20% Domestic, 23% Exports Exports, 80% 77% UNICHEM Export Revenue Break-up by Region Export Revenue Break-up by Region USA / USA/ Canada Canada ROW 1% ROW 2% 21 % 20% Europe Europe, 78 %

  40. Slide 40: Management Focus: APIs for Generic Markets

    Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets Penetrate into New Regulated Markets Achieve cost leadership in 3~4 molecules UNICHEM Long term Supply Contracts with customers in Regulate

  41. Slide 41: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41

  42. Slide 42: R&D Focus

    Focus Unichem has a two fold R&D strategy – Development of patent non-infringing processes for APIs – Development of Novel Drug Delivery Systems (NDDS) Chemical R&D – Centre of Excellence at Goa offering the most conducive environment for value added research – Developed novel, innovative & efficien

  43. Slide 43: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 43

  44. Slide 44: Management & Governance

    Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Nasser Munjee; Mr. Prafull D Sheth; Mr. Anand Mahajan) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads Chairman’s Offi

  45. Slide 45: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 45

  46. Slide 46: Standalone Financials (INR Lakhs) – Quarter

    Standalone Financials (INR Lakhs) For three For three Particulars months ended months ended % Growth Mar 31, 2014 Mar 31, 2013 Sales Income from Operations: Domestic Operations Formulations 13,905.20 14,215.49 -2.2% API 718.10 462.25 55.3% International Operations Formulations 7,440.46 6,989.81 6.4%

  47. Slide 47: Standalone Financials (Full year, INR Lakhs)

    Standalone Financials (Full year, INR Lakhs) Year ended Year ended Particulars % Growth Mar 31, 2014 Mar 31, 2013 Sales Income from Operations: Domestic Operations Formulations 65,502.04 63,528.70 3.1% API 2,698.81 2,091.92 29.0% International Operations Formulations 25,519.69 25,267.23 1.0% API 9,1

  48. Slide 48: Consolidated Financials (Full year, INR Lakhs)

    Consolidated Financials (Full year, INR Lakhs) Particulars Year ended Year ended 31st Mar'14 31st Mar'13 (Audited) (Audited) INCOME FROM OPERATIONS Net Sales/Income from operations (Net of excise duty) 111,819.37 107,244.54 Other Operating Income 1,525.42 835.74 TOTAL INCOME FROM OPERATIONS (NET) 11

  49. Slide 49: Thank You

    Thank You ©Unichem Laboratories Ltd

Unichem Laboratories — Q4 FY2014 Earnings Presentation on 6ix