Eris Lifesciences Ltd · NSE:ERIS
Eris Lifesciences — Investor Presentation (November 2022)
35 slides from Eris Lifesciences's investor presentation, Nov 3, 2022
Slide 1: Corporate presentation intimation letter to exchanges
Date: 03rd November, 2022 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla Complex Mumbai- 400001 Bandra (E) Mumbai-400051 Security Code: 540596 Symbol: ERIS SUBJECT: CORPORATE PRESENTATION Dear Sir/Madam, Pursuant to the r
Slide 2: Corporate Presentation November 2022
tT POWER OF EMPATHY TRUTH OF SCIENCE CORPORATE PRESENTATION NOVEMBER 2022
Slide 3: Business Highlights
Business Highlights ▪ Founded in 2007; profitable from the second year of operations Revenue CAGR 12% in last 2 years ▪ Only Indian listed pharmaco with a pure-play Domestic 13,470 Branded Formulations model 10,741 8,591 ▪ Rank 21 in IPM - Youngest among India’s Top-25 domestic branded formulation p
Slide 4: Financial Snapshot
Financial Snapshot FY 22 H1 FY 23 ₹ mn ₹ mn ₹ mn ₹ mn 13,470 4,850 8,591 2,807 11.2% 36.0% 21.2% 32.7% Op Revenue yoy growth EBITDA Margin Op Revenue yoy growth EBITDA Margin ₹ mn ₹ mn 4,058 2,125 PAT 30.1% 24.7% Margin PAT Margin Dividends as % of net profits Highlights ▪ Maintained ROIC at >= 30%
Slide 5: Chronic and Sub-Chronic Focused Therapy Mix
Chronic and Sub-Chronic Focused Therapy ` Mix Contribution of Chronic + Sub-chronic vs. Acute Therapy-wise composition of revenue Others Women’s Health 9% Anti Diabetes * 6% CNS 30% 7% Chronic & 82% Sub-chronic 90% Derma 8% 16% 24% Acute 18% 10% VMN MAT Sep’17 MAT Sep’22 Cardiac Care Contribution of
Slide 6: Clear Visibility on Secular Growth Drivers over the next 3 years (1/2)
Clear Visibility on Secular Growth Drivers over the next 3 years (1/2) Therapeutic Segment/s Key Growth Drivers 3-year Outlook Core Segment - Cardio Metabolic * • Several exciting growth drivers in • Market expected to 1 sustain “early to mid (53% of current revenue) Eris portfolio teen” growth rate
Slide 7: Clear Visibility on Secular Growth Drivers over the next 3 years (2/2)
Clear Visibility on Secular Growth Drivers over the next 3 years (2/2) Therapeutic Segment/s Key Growth Drivers 3-year Outlook Emerging Therapies (21% of current revenue) • CNS Eris will continue growing 2 ahead of the market by a CNS │ Women’s Health │ Dermatology • Last 6 quarters – Eris 22.5% gro
Slide 8: Oaknet – An Emerging Success Story in Value Creation Through M&A
Oaknet – An Emerging Success Story in Value Creation Through M&A Going into the deal – May 2022 Value Creation Initiatives - May 2022 to Sep 2022 • Strategic entry for Eris into the • Leveraged key levers of Execution Excellence Dermatology segment • Realigned Divisional focus with specific Product
Slide 9: Top-15 Power Brands Portfolio Contribute ~66% of Revenue
Top-15 Power Brands Portfolio Contribute ~ 66% of Revenue Our Top 15 Mother Brands contribute ~ 66% of our revenue Blockbuster additions to power brand portfolio in the last two years MAT Sep’22 Sales (₹ mn) Market share ` 2,867 6% 1,604 4% • Crossed INR 100+ crore of annual revenue on monthly sales
Slide 10: Eris Enjoys a Strong Position in the ~INR 11,500 Crore Oral Anti-Diabetes Market
Eris Enjoys a Strong Position in the ~ INR 11,500 Crore Oral Anti-Diabetes Market Eris ranks in Oral Anti-Diabetes therapy Eris has built a full-service presence in Oral Anti-Diabetes therapy with high market ranks in latest generation molecules (DPP4 and By Revenue* Total # Rx** SGLT2 inhibitors) S
Slide 11: Jan 2022 – Leveraging the Insulin/GLP1 Opportunity with MJ Biopharm
Jan 2022 – Leveraging the Insulin/ GLP1 Opportunity with MJ Biopharm • Leading position in Indian oral anti-diabetes • Proven capabilities in developing advanced biological formulations from preclinical through • Strong credibility with Diabetologists/ to Phase III and regulatory approval Endocrinol
Slide 12: Created Significant Value from Past Acquisitions
Created Significant Value from Past Acquisitions Acquisition Rationale Value Creation • Launched several new products in Neurology and Psychiatry to build a CNS franchise growing at 33% • Entry into CNS p.a. Domestic therapy • Flagship brand Renerve has grown from Rs. 77 crore 2017 Formulations port
Slide 13: Eris Maintains High Prescription Ranking among Doctor Specialties
Eris Maintains High Prescription Ranking among Doctor Specialties Eris Prescription Ranking* among Doctor Specialties 4 4 4 DIABETOLOGISTS # CARDIOLOGISTS NEUROLOGISTS 5 CONSULTING 7 5 GASTROENTEROLOGISTS PHYSICIANS DERMATOLOGISTS 12 Source: SMSRC MAT Aug 2022│* Rank in Represented Market including
Slide 14: Three Pillars of Our Market Engagement
Three Pillars of Our Market Engagement The core focus of our market engagement is to enable clinicians to improve clinical outcomes in patients through timely and precision diagnosis and treatment 1 2 3 Dissemination of latest Generation of Patient Care initiatives scientific knowledge actionable sc
Slide 15: Leading the Digital Dissemination of Scientific Knowledge since the Start of the Pandemic
1. Leading the Digital Dissemination of Scientific Knowledge since the Start of the Pandemic • As a prominent stakeholder in the enhancement of scientific knowledge, Eris has facilitated ~4,300+ digital (group) interactions since the start of the pandemic covering 60,000+ doctors • Discussion topics
Slide 16: Pioneering India-Centric Studies – The India Diabetes Study
2a. Pioneering India-Centric Studies to Generate Actionable Scientific Evidence – The India Diabetes Study First of its kind nation-wide study Cardiovascular risk in newly diagnosed type 2 diabetes patients in India 5080 Patients │ 1932 Physicians │ 928 Medical centres │ 121 Cities across 27 Indian
Slide 17: Pioneering India-Centric Studies – The India Heart Study
2b. Pioneering India-Centric Studies to Generate Actionable Scientific Evidence – The India Heart Study IHS Methodology IHS Revealed Expert Speak The investigators examined the blood 42% of the participants were White-coat hypertensives get pressure of 18,918 participants with misdiagnosed and were
Slide 18: Patient Care – Driving Precision Diagnosis and Better Disease Management
3. Patient Care – Driving Precision Diagnosis and Better Disease Management ▪ Objective - to bring cutting-edge 21,126 1,20,673 healthcare solutions to our patients through the involvement of Key Opinion Leaders ▪ Focused on state-of-the-art diagnostic facilities and subsequent treatment options Num
Slide 19: Our Manufacturing Infrastructure
Our Manufacturing Infrastructure WHO-GMP manufacturing 71% of revenue (in H1 FY23) came WHO GMP facility in Guwahati, Assam facility in Guwahati, Assam from products manufactured at 100,000 Built-up area (sq. ft) 280+ Products manufactured the Guwahati facility Capacity utilization for Prescription
Slide 20: Pan-India Sales Presence and Distribution Network
Pan-India Sales Presence and Distribution Network Stockists Region-wise sales distribution (H1 FY23) 11 Super Stockists 1 6 81 23 1 10% 47 56 120 200 49 56 2 4 22% 40% 89 29 133 124 1 33 97 251 70 4 28% 94 99 2 Central Warehouses 241 1 22 Sales Depots 138 South West North East 2,059 Stockists 5,00,0
Slide 21: Board of Directors
Board of Directors • Eight-member Board of Directors, comprising of four Executive Directors and four Independent Directors Amit Bakshi Krishnakumar V Inderjeet Singh Negi Kaushal Shah Chairman and Executive Director & Executive Director Executive Director Managing Director Chief Operating Officer •
Slide 22: Lifestyle Diseases Uptrend – A Large Market Opportunity
Lifestyle Diseases Uptrend – A Large Market Opportunity Expected prevalence of CVD in India ▪ Significant increase in prevalence of non-communicable 69 diseases (NCDs) in India; share of heart disease and metabolic disorders projected to expand in the years to 29 come 22 19 6 8 ▪ India is called the
Slide 23: Hence the Enduring Pillars of Our Business Strategy
Hence the Enduring Pillars of Our Business Strategy CHRONIC AND SUB-CHRONIC THERAPIES 22
Slide 24: Key Growth Drivers (1/2)
Key Growth Drivers (1/2) Expansion of • Our business model of building strong and sustainable brands enables us to consistently 1 power-brands’ outperform the market franchise • Eris delivered a growth of 19% in Q2 FY23 vs. a market growth of 13% • Eris delivered a growth of 8% in Q1 FY23 vs. a mark
Slide 25: Key Growth Drivers (2/2)
Key Growth Drivers (2/2) Expansion of • We continue to make good progress in expanding our coverage of Specialists and Consulting 3 physician Physicians in line with our expectations coverage • We have added ~ 200 Reps to the Eris field-force since the start of the year Therapeutic • Strong momentum
Slide 26: Eris Lifesciences Ltd.
Eris Lifesciences Ltd. CORPORATE OFFICE: Shivarth Ambit, Plot No. 142/2, Ramdas Road, Off SBR, Near Swati Bungalows, Bodakdev, Ahmedabad, Gujarat 380054 CIN: L24232GJ2007PLC049867 Website : www.eris.co.in IR Contact Kruti Raval kruti@erislifesciences.com 25
Slide 27: Appendix
Appendix 26
Slide 28: Business Structure and Holdings
Business Structure and Holdings Eris Lifesciences Limited Promoters 11.0% Aprica Healthcare Limited Earlier known as UTH Healthcare Limited Public 15.4% Eris M. J. Biopharm Private Limited 52.3% FPI Earlier known as Kinedex Healthcare Private Limited 21.3% Eris Therapeutics Limited DIIs Eris Oaknet
Slide 29: Financial Summary (1/2)
Financial Summary (1/2) P&L Summary FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 Revenue 7,495 8,556 9,822 10,741 12,119 13,470 8,591 Gross Profit 6,449 7,215 8,285 9,025 9,736 10,885 6,683 Gross Profit Margin (%) 86.0% 84.3% 84.4% 84.0% 80.3% 80.8% 77.8% Operating EBITDA 2,691 3,220 3,449 3,684 4,306 4,85
Slide 30: Financial Summary (2/2)
Financial Summary (2/2) FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 BS Summary Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar’22 Sep’22 Margin (%) Share Capital 138 138 138 136 136 136 136 Gross Margin 86.0% 84.3% 84.4% 84.0% 80.3% 80.8% 77.8% Reserves 5,534 8,476 11,368 12,828 15,628 18,947 20,133 EBITDA Margin
Slide 31: Key Brands in Oral Diabetes Care
Key Brands in Oral Diabetes Care Therapy wide presence in Oral Diabetes Care with power brands holding high ranks in Newer-generation fast-growing molecules (DPP4 and SGLT2 inhibitors) Sulfonylurea rank 6 in the ~5,000 cr Glimepiride and combinations market Glimisave MV rank 2 in Glimeperide + Vogli
Slide 32: Key Brands in Cardiovascular and VMN Therapies
Key Brands in Cardiovascular and VMN Therapies Strong presence in Anti-Hypertensives: the largest segment of Cardiac Care rank 5 in the ~4,000 cr Telmisartan and combinations market Eritel CH rank 5 in Telmisartan + Chlorthalidone market Eritel LN rank 2 in Telmisartan + Cilnidipine market rank 4 in
Slide 33: Key Brands in Derma, CNS and Women’s Healthcare Therapies
Key Brands in Derma, CNS and Women’s Healthcare Therapies Leading brands in Medical Dermatology Cosvate rank 1 in the ≈500 cr Clobetasol and combinations market 16% market share Cosvate-GM rank 1 Clobetasol + Gentamicin + Miconazole market Cosmelite rank 3 in Melasma market Emerging presence in CNS
Slide 34: Safe Harbour Statement
Safe Harbour Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and the underlying assumptions
Slide 35: Thank You
THANK YOU Eris Lifesciences 34
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