Gland Pharma Ltd. · NSE:GLAND
Gland Pharma — Q4 FY22 Earnings Presentation
34 slides from Gland Pharma's earnings presentation, May 19, 2022
Slide 1: Financial Results Q4'FY22 & FY22
Gland Pharma Limited Financial Results Q4’FY22 & FY22 19th May 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation
Slide 3: Financial Highlights (1/3)
Financial Highlights (1/3) Demonstrated business resilience despite operational challenges Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 17,341 11,030 44,007 4,136 14,370 8,877 34,629 3,749 37% 35% 40% 40% Q4 FY21 Q4 FY22 FY21 FY22 Q4 FY21 Q4 FY22 FY21 FY22 PBT / PAT /
Slide 4: Financial Highlights (2/3)
Financial Highlights (2/3) Strong Balance Sheet to support future growth plans Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) 71,576 (INR Mn) 59,032 12250 34,483 34,444 12,250 30,058 30,017 36,462 46,782 59,326 36,462 13,252 13,202 Mar'20 Mar'21 Mar'22 Mar'20 Mar'21 Mar'22 Networth Fre
Slide 5: Financial Highlights (3/3)
Financial Highlights (3/3) Focus on Capital efficiency and healthy return ratios Asset Turnover Ratio (1)(2) ROCE (ex-cash)(3) / ROCE (4) / RONW (5) (%) 2.8 2.8 2.4 35% 33% 32% 23% 21% 18% 24% 21% 0.7 0.7 0.6 19% Total asset turnover Fixed asset turnover FY20 FY21 FY22 FY20 FY21 FY22 RoCE (Ex-Cash)
Slide 6: P&L Highlights
P&L Highlights (INR Mn) YoY YoY Particulars Q4 FY22 Q4 FY21 FY22 FY21 Q3 FY22 growth growth Revenue from operations 11,030 8,877 24% 44,007 34,629 27% 10,633 Other Income 652 473 38% 2,239 1,348 66% 457 Total Income 11,682 9,350 25% 46,246 35,977 29% 11,090 Gross Margin(1) 5,577 4,962 12% 22,915 19,
Slide 7: USA, Europe, Canada and Australia (Core Markets)
USA, Europe, Canada and Australia (Core Markets) Revenue: FY22: Rs. 29,248 Mn Q4 FY22: Rs. 7,110 Mn YoY Growth: 16% YoY Growth: 8% Despite market challenges, our core markets remained strong during the year. Key products driving the growth includes Micafungin Sodium, Ketorolac Tromethamine, Core M
Slide 8: Rest of the World Markets
Rest of the World Markets Our strategy of expanding our product portfolio in FY22: Rs. 8,481 Mn Q4 FY22: Rs. 1,902 Mn YoY Growth: 55% YoY Growth: 32% identified geographies has led to a y-o-y growth of 55% in FY22. Rest of the World Markets Our key markets contributing to the growth continue to
Slide 9: India (Domestic Market)
India (Domestic Market) India sales grew by 60% in FY22 on account of volume FY22: Rs. 6,278 Mn Q4 FY22: Rs. 2,018 Mn YoY Growth: 60% YoY Growth: 137% growth of existing products. The India sales stood at 18% of our revenue for Q4 India (Domestic Market) FY22. For the full year FY22, the reven
Slide 10: Expansion of Manufacturing Infrastructure
Expansion of Manufacturing Infrastructure New lines to support our complex injectables development pipeline for suspensions, hormones and emulsions based products Successfully completed installation of 4 new lines, adding > 200 million units of additional capacities These new lines have been insta
Slide 11: Key Focus Areas
Key Focus Areas Focus on achieving a diverse product mix offering products at various stages of their lifecycle as well as a robust product pipeline Working towards building bio- Expanding development and Geographic expansion in to similar / biologics CDMO manufacturing capabilities in emerging mark
Slide 12: Investor Presentation
GLAND PHARMA LIMITED Investor Presentation
Slide 13: Snapshot
Snapshot 8 Manufacturing Extensive and Vertically Integrated Facilities – Greater Control Over 4 Finished Formulation Manufacturing Processes Injectables Manufacturing Capabilities and 4 API No Warning Letters 311 ANDA Filings in Consistent Compliance Track Record with from USFDA Since the US (1) (2
Slide 14: Our Journey
Our Journey Received ANDA approval for Enoxaparin Sodium Injection USP Received ANDA approval for first Ophthalmic product Launched Heparin BGV Hamburg USFDA and EU USFDA approval for facilities First OTC launch in Launch of Enoxaparin Sodium Sodium Injection (Germany) approval for at Visakhapatnam,
Slide 15: Business Overview
Business Overview Extensive and Vertically Integrated Manufacturing Capabilities With Consistent Compliance Track Record API facilities provide in-house manufacturing 4 Finished 4 API Facilities capabilities for critical APIs, thereby 8 Facilities Formulation Facilities & 11,000 kg / year, • Control
Slide 16: Business Overview (Cont'd)
Business Overview (Cont’d) Diversified B2B-led Model Across Markets Complemented by B2C Model in India • Operating in 60+ countries as of March 31, 2022 • Successful track record of operating B2B model with leading companies, complemented by a B2C model in home market of India leveraging brand stren
Slide 17: Business Overview (Cont'd)
Business Overview (Cont’d) Extensive Portfolio of Complex Products Internal R&D & Regulatory Capabilities Present in sterile injectables, oncology and ophthalmics, and focus Centralized R&D Laboratory located at Dundigal, Hyderabad on complex injectables, NCE-1s, First-to-File products and facility,
Slide 18: Key Strengths
Key Strengths 6 1 Experienced and Qualified Injectables: One of the Fastest Management Team Growing and Largest Segment 5 2 Track Record of Growth and Extensive and Vertically Profitability from a Diversified Integrated Injectables Revenue Base with Healthy Manufacturing Capabilities Cash Flows 4 3
Slide 19: Generic Injectables: Market & Growth Drivers
Generic Injectables: Market & Growth Drivers US$161bn Market with Multiple Growth Levers Driven by LoEs, Opportunity from Shortages and Ease of Use Geographic Mix- Generic Injectable (17-21 CAGR) US Generic Injectable market (US$bn) 161 (US$bn) India 9% +8% 2 53 +11% 43 118 China 5% 2 21 35 The US G
Slide 20: Generic Injectables: Market Entry Barriers
Generic Injectables: Market Entry Barriers Manufacturing Complexities to Meet High Level of Compliance and Stringent Quality Standards Regulatory Requirements Complexities involving sterilisation, packaging, High level of regulatory enforcement of cGMP sterile fill/finish, with stability assessment
Slide 21: Extensive & Vertically Integrated Manufacturing Capabilities
Extensive & Vertically Integrated Manufacturing Capabilities Overview Manufacturing Footprint 8 Facilities Dundigal, Hyderabad Sterile Injectables Facility (Flagship) USFDA (US), MHRA (UK), • Liquid Vials, Lyophilizers, Ampoules, ANVISA 4 4(1) Pre-filled syringes, Bags and (Brazil), TGA Ophthalmics
Slide 22: Consistent Regulatory Compliance Track Record
Consistent Regulatory Compliance Track Record Highlights No warning letters All facilities Certified WHO GMP 3 ISO certifications as from USFDA (whether GMP compliant by certifications from the of March 31, 2022 (1) as a result of facility USFDA, and certain Drugs Control inspection or otherwise) fa
Slide 23: Diversified Business Model with Focus on Growth & Stability
Diversified Business Model with Focus on Growth & Stability Diversified B2B-led Model Across Markets, Complemented by a Targeted B2C Model in India B2B (c.95% of FY22 Revenue) B2C (c.4% of FY22 Revenue) B2B – IP Led B2B Tech Transfer B2B CMO B2C Own Filing Partner Filing • Out-license to marketing p
Slide 24: Gland's B2B Model: Salient Features
Gland’s B2B Model: Salient Features Advantages Include Stable Cash Flows, Better Profitability Profile, Margin Stability from Natural Hedge Against Raw Material Pricing and End-formulation Pricing Fluctuations Steady / Predictable Cash Flow Long-term supply contracts with marketing partners rangin
Slide 25: Complex Product Portfolio Supported by Strong R&D
Complex Product Portfolio Supported by Strong R&D… Right Capability Matrix in Products and Delivery Systems Expertise in Present in: Focused on: Expanding Expanding in new Key products synthesis of Oncology capabilities in: delivery systems: include: Complex complex drug Ophthalmics and inject
Slide 26: Supported by Proven Regulatory Capabilities
…Supported by Proven Regulatory Capabilities Product Development Capabilities Supported by Regulatory Expertise and Track Record in Filing and Approval of Large Number of Product Registrations Established Expertise Successful track record and pipeline Geographic Breakdown (FY22) Broad Range of Filin
Slide 27: Focus on Lifecycle Management of Products
Focus on Lifecycle Management of Products Focus on Lifecycle Management of Products Across Manufacturing, R&D and Supply Chain Processes to Maintain Competitive Advantage Over Peers Vertical Integration as Differentiator Operational Efficiencies Ability to vertically integrate and manufacture Ab
Slide 28: Corporate Governance Framework Based on Independent Board
Corporate Governance Framework Based on Independent Board Name Profile Board of Directors Yiu Kwan Stanley Lau • Bachelor’s degree in pharmacy from The School of Pharmacy, University of London Chairman and Independent Director • Director on the board of Solasia Pharma K. K. and TaiLai Bioscience Ltd
Slide 29: Professional and Experienced Management Team
Professional and Experienced Management Team Name Qualification Management Team Srinivas Sadu • Master’s degree in science (industrial pharmacy) from Long Island University, New York Managing Director and Chief Executive • Master’s degree in business administration from University of Baltimore; Offi
Slide 30: Promoted by Shanghai Fosun Pharma
Promoted by Shanghai Fosun Pharma Shanghai Fosun Pharma is Global Pharmaceutical Major with Extensive Pharmaceutical Manufacturing, Distribution and R&D Expertise Globally ● Fosun Pharma is a Global pharmaceutical major, whose shares are listed on the Shanghai Stock Exchange and the Stock Exchange o
Slide 31: Building Blocks to Implement Future Strategy
Building Blocks to Implement Future Strategy Continued Focus on Cost Management Pursue Strategic Acquisitions and Align with 6 Partnerships Shanghai Fosun Pharma to Increase Market 5 Increase Current Share Continue to Market Presence Invest in and Enter New 4 Manufacturing Markets and Technological
Slide 32: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance Delivering business growth with adequate R&D investments to support differentiated pipeline Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 44,007 37% 40% 34,629 40% 17,341 37% 14,370 26,332 20,442 10,946 7921 FY19 FY20 FY21 F
Slide 33: Proven Track Record of Financial Performance (Cont'd)
Proven Track Record of Financial Performance (Cont’d) Strives to be a Capital Efficient Business. Company has no Significant Borrowings Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 36% CAGR 34,483 34,444 71,576 30,058 30,017 59,032 13,252 13,202 36,462 28,620 7,533 7,479 FY1
Slide 34: GLAND
Registered Office Corporate Office: Gland Pharma Limited Gland Pharma Limited Survey No. 143-148, 150 & 151 Plot No. 11 & 84, TSIIC Phase: IV Near Gandimaisamma 'X' Roads Pashamylaram (V), Patancheru (M), D.P. Pally, Dundigal Gandimaisamma Mandal Sangareddy District Medchal-Malkajgiri District Hyder