Natco Pharma Limited · NSE:NATCOPHARM
Natco Pharma — Investor Presentation (November 2017)
19 slides from Natco Pharma's investor presentation, November 2017
Slide 1: Corporate Presentation
CORPORATE PRESENTATION November 2017
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 20,789 10,897 7,556 8,402 Public, Promoters , 48.81% 51.19% FY2014 FY2015 FY2016 FY2017 …And Robust EBITDA and PAT(2) Margins EBITDA INRmn 26% 25% 26% 34% 6,973 Natco Pharma’s Stock Price Has Increased by 240% S
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-C the US Singapore and Australia Vertical in
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 Strong position in Oncology and Hepatitis-C domains INRmn Brands in excess of INR 100mn+ sales in Oncology 6 segment 8,810* 6,342* Brands occupy the #1 position in Hep-C segment 3 capturing over 50%
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 3,224 Portfolio of well recognized brands – 6 brands with INR 100mn+ sales in the oncology segment 2,526 1,947
Slide 9: Gastro Hepatology – Leading Market Position in Hep-C
Gastro Hepatology – Leading Market Position in Hep-C Market Share(2) Launched generic Sofosbuvir and its combinations for the treatment of Hep- C in India & Nepal under its brand Hepcinat & Hepcinat LP Non-exclusive licensing agreement with Gilead Sciences for 101 countries Hepcinat 52% Market i
Slide 10: Expanding Domestic Presence with Launch of New CnD Division
Expanding Domestic Presence with Launch of New CnD Division Cardiology and Diabetology Launched Cardiology and Diabetology (CnD) division in early 2017 Launched Argatroban injection in July 2017, for treatment of patients with thrombosis syndrome Focus will be on niche molecules with high barr
Slide 11: Expanding RoW Presence
Expanding RoW Presence RoW growth to be driven by Hep-C franchise expansion and continued business in LatAm and other Asian countries Hep-C driven markets Received approvals and import permits for 14 countries(1) Canada Launched Oseltamivir (generic drug of Tamiflu) (75mg Capsule) 12 approvals
Slide 12: In-House API Development with Vertical Integration for Key Formulation Products
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 Over 20 ANDAs Approved(1) Two research facilities with capabilities across synthetic chemistry, biotech & fermentation, nano pharmaceuticals, new drug discove
Slide 14: Commitment to Manufacturing Excellence with a Culture of Quality and Compliance
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: 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 Recently launched niche molecules in the USA Hepatitis-C segment market: Launch 8-10 new products ─ Liposomal Doxorubicin Near-term ─ Glatiramer Acetate
Slide 16: Experienced Management
Experienced Management Mr. V.C Nannapaneni Holds Masters degree in Pharmaceutical Administration from the Long Island University, US Chairman and Director Over 4 decades of experience in the pharmaceutical industry Mr. Rajeev Nannapaneni Holds bachelors degree in Quantitative Economics and His
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% 20,789 10,897 6,973 8,402 7
Slide 18: Historical Financials
Historical Financials Consolidated Profit & Loss Statement Consolidated Balance Sheet (INRmn) (INRmn) Particulars 31-Mar-17 31-Mar-16 Particulars 31-Mar-17 31-Mar-16 Equity share capital 349 348 Revenue from operations (gross) 20,650 10,804 Other equity 16,144 12,609 Less : Excise duty Non-controlli
Slide 19: Historical Financials (contd.)
Historical Financials (contd.) Segmental Breakdown (INR Mn) Consolidated Financial Results (INR Mn) Quarter Ended Quarter ended Revenue Division Q2 – FY18 Q1 – FY18 Q2 – FY17 Q2 – FY18 Q1 – FY18 Q2 – FY17 API, Domestic 118.2 67.2 146.2 Total Revenues 4,322 4,487 4,711 API, Exports 465.5 795.9 330.0