Glenmark Pharmaceuticals Limited · NSE:GLENMARK

Glenmark Pharmaceuticals — Q2 FY24 Earnings Presentation

26 slides from Glenmark Pharmaceuticals's earnings presentation, Nov 10, 2023

  1. Slide 1: Letter to stock exchanges: Investor Presentation

    November 10, 2023 To, To, Dy. General Manager The Manager – Listing, Department of Corporate Services, National Stock Exchange of India Ltd., BSE Ltd., Plot No. C/1, G Block, P. J. Towers, Dalal Street, Bandra Kurla Complex, Fort, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Ref: Scrip Code: 532296

  2. Slide 2: Investor Presentation: Q2 FY24

    Investor Presentation: Q2 FY24 10 November 2023

  3. Slide 3: Disclaimer

    Disclaimer This document has been prepared by Glenmark Pharmaceuticals Ltd. and the information, statements and analysis made in this document describing the Company’s or its affiliates’ objectives, projections and estimates are forward looking statements. Forward‐looking statements are all statemen

  4. Slide 4: Strategic Restructuring For Sharper Focus On The Three Businesses

    Strategic Restructuring For Sharper Focus On The Three Businesses (100% subsidiary) U.S. headquartered, innovation biotech Separate Board of Directors company focused on development of novel biological molecules as potential Focused on building a global treatment options for oncology formulation bus

  5. Slide 5: Committed to Sustainability across all our operations globally

    Committed to Sustainability across all our operations globally Environmental Social Governance Become carbon neutral by 2030* 16 global safety programs by 2023 Maintain an ethical business culture to Achieve water neutral operations by Aspire to impact 3 million lives by 2025 drive robust governance

  6. Slide 6: Q2 & 6M FY24 Snapshot – Consolidated (GPL + GLS)

    Q2 & 6M FY24 Snapshot – Consolidated (GPL + GLS) Q2 FY24 6M FY24  Revenues from Operations at Rs. 35,879 Mn with a growth of  Revenues from Operations at Rs. 69,895 Mn with a growth of 6.3% YoY 13.6% YoY  Adjusted EBITDA* of Rs. 6,732 Mn with margin of 18.8%  Adjusted EBITDA* of Rs. 13,045 Mn wi

  7. Slide 7: Q2 & 6M FY24 Snapshot – Reported (Continuing Operations)

    Q2 & 6M FY24 Snapshot – Reported (Continuing Operations – Glenmark Group excluding GLS) Q2 FY24 6M FY24  Revenues from Operations at Rs. 32,074 Mn with a growth of  Revenues from Operations at Rs. 62,434 Mn with a growth of 6.3% YoY 13.9% YoY  Adjusted EBITDA* of Rs. 5,053 Mn with margin of 15.8%

  8. Slide 8: Consolidated Revenues from Operations – Q2 FY24

    Consolidated Revenues from Operations – Q2 FY24 Second Quarter ended September 30 First Quarter ended June 30 Rs Mn FY 2023‐24 FY 2022‐23 YoY Growth (%) FY 2022‐23 QoQ Growth (%) India 11,217 10,916 2.8% 10,643 5.4% North America 7,392 7,533 ‐1.9% 8,085 ‐8.6% Europe 5,997 3,785 58.4% 5,732 4.6% Rest

  9. Slide 9: Consolidated Revenues from Operations – 6M FY24

    Consolidated Revenues from Operations – 6M FY24 Six Months ended September 30 Rs Mn FY 2023‐24 FY 2022‐23 YoY Growth (%) India 21,860 21,268 2.8% North America 15,477 14,161 9.3% Europe 11,729 7,085 65.5% Rest of the World1 12,836 10,380 23.7% API 7,699 6,994 10.1% Total 69,600 59,889 16.2% Other Re

  10. Slide 10: Revenue Contribution by Key Geographies – Q2 FY24

    Revenue Contribution by Key Geographies – Q2 FY24 5% 11% 1% 11% 0% 11% 32% 31% 31% 16% 20% 18% 17% 11% 17% 21% 22% 24% 9 ©2023 Glenmark Pharmaceuticals Ltd. All Rights Reserved

  11. Slide 11: Revenue Contribution by Key Geographies – 6M FY24

    Revenue Contribution by Key Geographies – 6M FY24 11% 3% 11% 0% 35% 31% 18% 17% 12% 17% 23% 22% 10 ©2023 Glenmark Pharmaceuticals Ltd. All Rights Reserved

  12. Slide 12: Q2 & 6M FY24 P&L Highlights – Consolidated (GPL + GLS)

    Q2 & 6M FY24 P&L Highlights – Consolidated (GPL + GLS) Rs. Mn Q2 FY24 Q2 FY23 %YoY 6M FY24 6M FY23 %YoY Revenues from Operations 35,879 33,752 6.3% 69,895 61,525 13.6% Gross Margin 23,269 22,085 5.4% 45,005 39,738 13.3% Gross Margin (%) 64.9% 65.4% 64.4% 64.6% Adjusted EBITDA* 6,732 6,216 8.3% 13,04

  13. Slide 13: Q2 & 6M FY24 Snapshot – Reported (Continuing Operations)

    Q2 & 6M FY24 Snapshot – Reported (Continuing Operations – Glenmark Group excluding GLS) Rs. Mn Q2 FY24 Q2 FY23 %YoY 6M FY24 6M FY23 %YoY Revenues from Operations 32,074 30,179 6.3% 62,434 54,825 13.9% Gross Margin 20,096 19,422 3.5% 38,579 34,471 11.9% Gross Margin (%) 62.7% 64.4% 61.8% 62.9% Adjust

  14. Slide 14: Abridged Balance Sheet (Continuing Operations)

    Abridged Balance Sheet (Continuing Operations – Glenmark Group excluding GLS) GLS Rs. Mn 30 Sep 2023 31 March 2023 30 Sep 2023 Fixed Assets 43,256 41,951 8,438 Intangibles 23,576 23,427 172 Non Current Assets ‐ Others 20,562 21,084 153 Inventories 26,499 23,736 6,695 Trade receivables 32,005 36,652

  15. Slide 15: Key Balance Sheet items (Consolidated – GPL + GLS)

    Key Balance Sheet items (Consolidated – GPL + GLS) Total Debt including GLS Rs. Mn 30 Sep 2023 31 March 2023 Gross Debt 49,210 43,477 Cash and Cash Equivalents 15,659 14,430 Net Debt 33,550 29,047 CAPEX Summary including GLS Rs. Mn Q2 FY24 6M FY24 Tangible 1,628 2,705 Intangible 869 1,065 Total 2,49

  16. Slide 16: Working Capital Summary (Continuing Operations)

    Working Capital Summary (Continuing Operations – Glenmark Group excluding GLS) Rs. Mn 30 Sep 2023 31 March 2023 Net Working Capital Inventory 26,499 23,736 Receivables 32,005 36,652 Payables 19,173 20,004 Net Working Capital (NWC) 39,332 40,384 Working Capital Ratios Inventory Days 77 75 Receivable

  17. Slide 17: India

    6M FY24 31% India YoY: 2.8% Strategic partnership with Revenue (INR Mn) QoQ: 5.4% Market Slow‐down in the acute OMRON – raising awareness on 11,217 10,916 segment; Respiratory and 10,643 measuring blood pressure at Dermatology growth impacted home Key Highlights  Lower growth was mainly on account

  18. Slide 18: North America

    6M FY24 31% North America YoY: ‐1.9% Revenue (INR Mn) QoQ: ‐8.6% Key launches – gTaytulla®, 2 approvals and 2 ANDA filings in Saxagliptin Tablets and Q2 FY24 8,085 Tacrolimus Ointment, 0.03% 7,392 7,533 Key Highlights  6M FY24 growth of 9.3% Q2 FY24 Q2 FY23 Q1 FY24  Key launches expected to contri

  19. Slide 19: Europe

    6M FY24 31% Europe YoY: 58.4% Revenue (INR Mn) QoQ: 4.6% Western Europe growth of 30%+; In‐licensed Winlevi® ‐ marketing RYALTRIS® launched in Slovakia, rights for 15 European markets 5,997 5,732 gaining share in other markets as well as South Africa 3,785 Key Highlights  Growth in the Western Euro

  20. Slide 20: Rest of the World (ROW)

    6M FY24 31% Rest of the World (ROW)1 YoY: 19.0% Glenmark Russia outperforms RYALTRIS® key driver of growth in Revenue (INR Mn) QoQ: 32.9% the overall market through the region (18%+ market share in 7,324 growth in base business and new Australia, strong launch in South 6,154 product launches Korea,

  21. Slide 21: Respiratory – Creating Global Scale

    Respiratory – Creating Global Scale  Marketing applications for RYALTRIS® submitted in more than 70 countries across Value market shares of RYALTRIS® across key geographies (Top the world. The product has been commercialized in 29 markets, including major 10 products within “R1A1 – Nasal Corticoste

  22. Slide 22: Innovative R&D Pipeline

    Innovative R&D Pipeline  GRC 54276 (HPK1 Inhibitor) is being developed as an orally administered IO‐adjuvant treatment for patients with solid tumors. GRC 54276 is a novel, orally active HPK1 inhibitor that demonstrates stand‐ alone efficacy and enhances current immunotherapy efficacy. GRC 54276 is

  23. Slide 23: Ichnos Sciences is a Clinical-Stage Biotechnology Company at the Forefront of Innovation in Oncology

    Ichnos Sciences is a Clinical‐Stage Biotechnology Company at the Forefront of Innovation in Oncology  Global footprint: the U.S. and Switzerland Fully Integrated  Fully owned by Glenmark, with plans to expand the investor base in the future Biotech  Accomplished management team with proven track

  24. Slide 24: Ichnos is Advancing a Differentiated Pipeline with Potential First- and Best-in-Class Assets

    Ichnos is Advancing a Differentiated Pipeline with Potential First – and Best‐in‐Class Assets Ichnos Oncology Pipeline ‐ First Wave Focuses on T‐Cell Ichnos to Out‐License Assets in Autoimmune (AI) Disease Engagers and Macrophage Modulators Molecule Molecule Potential Phase/Status Lead Indication Me

  25. Slide 25: Key Objectives For FY24

    Key Objectives For FY24* 1 Consolidated revenue growth: 10‐11% 2 Consolidated R&D investment: 8‐8.5% of total sales 3 Consolidated EBITDA margin: 19‐20%+ 4 Consolidated Capex: INR 6‐7 Bn 5 Priority to enhance free cash generation for further debt reduction 6 Close at least 1 out‐licensing deal in in

  26. Slide 26: glenmark

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