Strides Pharma Science Ltd · NSE:STAR
Strides Pharma Science — Investor Presentation (September 2021)
37 slides from Strides Pharma Science's investor presentation, September 2021
Slide 1: Adapt…Perform…Grow
Adapt…Perform…Grow Strides Pharma Science Limited | Corporate Presentation | September 2021
Slide 2: Strides is a differentiated and diversified B2C Global Pharmaceutical player
Strides is a differentiated and diversified B2C Global Pharmaceutical player
Slide 3: Introduction to Strides Pharma Science Limited
Introduction to Strides Pharma Science Limited Established in 1990, Strides is one of India’s leading pharmaceutical companies with consumer-facing businesses across the key regulated and emerging markets Strides core strategy is to develop and market niche generic formulations across several dosage
Slide 4: An unconventional strategy to focus on “scarcity” to create value in Strides 1.0
An unconventional strategy to focus on “scarcity” to create value in Strides 1.0 1997-2000 2001-2007 2013-15 Strides 1.0 Oral Solid Regulated Strong partnerships achieves its Dosage Market focus and expansion in Capabilities US, Other Regulated outcomes Markets Strides 2.0 initiates with B2C Focus 2
Slide 5: B2C Led Global Generics (Strides 2.0)
B2C Led Global Generics (Strides 2.0) Our focus is to identify, develop and commercialize “unique products” and create differentiated value in the global generics space
Slide 6: Expanding and deepening its global reach with a differentiated generics strategy
Expanding and deepening its global reach with a differentiated generics strategy 30+ YEARS 8 3,500+ 100+ 225+ Rich experience in the World-class manufacturing Global workforce Country of global R&D team size dynamic pharmaceutical facilities spanning four strength presence industry continents 400+ 1
Slide 7: Experienced Board of Directors with Strategic Oversight
Experienced Board of Directors with Strategic Oversight Dr. R. Ananthanarayanan Deepak Vaidya Arun Kumar Non-Executive Director Founder and Non - CEO & Managing Executive Chairman Director Badree Komandur Bharat. D. Shah S. Sridhar Executive Director & Independent Director Independent Director CFO H
Slide 8: Corporate leadership team with rich global pharmaceutical experience
Corporate leadership team with rich global pharmaceutical experience ✓ Managing Director & Chief Executive Officer of Strides since January 2020 Dr. R. Ananthanarayanan ✓ 30+ years of top pedigree global pharmaceutical experience across both the technical and commercial functions CEO & Managing Dire
Slide 9: ~80% of the formulation revenues driven by the regulated markets
~80% of the formulation revenues driven by the regulated markets NORTH AMERICA Own front end with a UK and EU differentiated portfolio and Driven by front end in UK, DACH legacy partnership business region, Nordic and strategic tie ups in rest of Europe SINGAPORE HQ Strides’ international HQ with US
Slide 10: Integrated R&D with global regulatory capabilities
Integrated R&D with global regulatory capabilities Diversified formats Oral solids, Oral liquids, Topicals - liquids, creams and ointments, Soft gels, Sachets, and modified release dosage formats Portfolio selection IP Development Focus on difficult-to-develop and IP owned products for regulated mar
Slide 11: Global manufacturing sites with wide spectrum of capabilities
Global manufacturing sites with wide spectrum of capabilities COMPLIANCE FRAMEWORK 8 MANUFACTURING FACILITIES IN US, SINGAPORE, ITALY (MILAN), KENYA (NAIROBI) AND INDIA (4 SITES ) 5 USFDA APPROVED FACILITIES HIGH LEVEL OF AUTOMATION 18 BILLION UNITS ACROSS MULTIPLE DOSAGE FORMATS INCLUDING TAB
Slide 12: Contrarian strategy in US, unlike competition. Achieving ~4x growth.
Contrarian strategy in US, unlike competition. Achieving ~4x growth. Growth driven by portfolio expansion and Frontend
Slide 13: Resurgent business growth through own front end and carefully selected products
Resurgent business growth through own front end and carefully selected products FOCUS APPROVALS PORTFOLIO PIPELINE TEAM ~$50M ~$215M IN FY16 IN FY21 Focus on mature products 130 ANDAs filed with Strong Commercial Several products Strong go to market that are high technology 100 approvals portfolio w
Slide 14: Well designed value-oriented portfolio strategy for our business progression
Well designed value-oriented portfolio strategy for our business progression MARGIN SURPLUS ALLOWING STEPPING UP THE VALUE CHAIN • Strategy designed around in-licensing programs with 505(b)(2) orientation • Product development, licensing & supply agreement entered with SUDA, an AU R&D Co. for its no
Slide 15: Continued US business momentum with drivers in place for the future growth
Continued US business momentum with drivers in place for the future growth % of consolidated revenues in FY21 PIVOTS FOR THE FUTURE • New launches to drive growth in the base business with continued ramp up in frontend while partnered business will down size by design EXISTING • The VA opportunity w
Slide 16: Portfolio more than doubles our current basket of 100 approved ANDA’s
Acquisition of ANDA portfolio from Endo solves for headwinds Portfolio more than doubles our current basket of 100 approved ANDA’s Transaction • Strides will pay ~US$24m for the acquisition of basket of ANDAs and the manufacturing facility at Chestnut Ridge, NY Details • The transaction will be fina
Slide 17: Acquisition of world class multi-dosage facility at Chestnut Ridge, New York
Acquisition of world class multi-dosage facility at Chestnut Ridge, New York Built over an area of ~200,000 sq ft, the site adds new growth capacities of 2 billion units for the US markets Site expands our capabilities into niche domains including Hormones, Nasal Sprays, Gels, Modified Release produ
Slide 18: Fast growth in often neglected other regulated markets
Fast growth in often neglected other regulated markets. Tapping $20b opportunity with portfolio fungibility across the key markets-Europe, Australia, Canada and South Africa.
Slide 19: Other Regulated market is amongst the fastest growing businesses for Strides
Other Regulated market is amongst the fastest growing businesses for Strides 01 03 Foray into new markets Low investment high return with a small base and opportunity through limited front end presence portfolio maximization in UK approach $20m Q1 $37m Revenues FY19 in Q4’21 02 A complex mix of P&Ls
Slide 20: Building a Significant Regulated Market Business outside US
Building a Significant Regulated Market Business outside US Incubation Business – Fair-Med, Trinity, Nordic, Netherlands, Canada • Bolt on acquisitions to broaden market presence • Building front end infrastructure for future growth. Growth Business – UK & Beltapharm • Robust business visibility com
Slide 21: Other regulated markets is led by our global portfolio and hybrid R&D strategies
Other regulated markets is led by our global portfolio and hybrid R&D strategies Fast growing UK frontend • Organic growth with 95+ registrations and strategic focus to sell products through own front-end • Tap market scarcity while maintaining significant market share in key molecules Strategic sup
Slide 22: Strong other regulated performance led by UK, EU & supplies to Australia
Strong other regulated performance led by UK, EU & supplies to Australia % of consolidated revenues in FY21 PIVOTS FOR THE FUTURE • Overall strategy to move from B2B to B2C while focusing on key partnerships in select territories • Strengthen presence in mature markets through portfolio expansion an
Slide 23: Emerging markets and global access markets has started witnessing green shoots
Emerging markets and global access markets has started witnessing green shoots
Slide 24: Redesigned emerging market strategy with branded generics focus
Redesigned emerging market strategy with branded generics focus 01 BRANDED GENERICS IN AFRICA • Local medical field force with coverage of 30,000 doctors • Industry leading secondary sales growth • 750 product registrations 02 “IN MARKET” MANUFACTURING IN KENYA • One of the two Ex-South Africa based
Slide 25: Strong bounce back in emerging markets, FY21 revenues jumps 73% YoY
Strong bounce back in emerging markets, FY21 revenues jumps 73% YoY % of consolidated revenues in FY21 PIVOTS FOR THE FUTURE Our goals in the Strategic Reset 20% In FY 20 we completed our course correction strategy for emerging market & institutional business to focus on the following outcomes: Emer
Slide 26: Financial Performance
Financial Performance Significant improvement in the quality of financials with pharma ROCE at ~ 13% and comfortable debt position
Slide 27: Healthy financial performance in FY21 led by regulated markets
Healthy financial performance in FY21 led by regulated markets Revenue EBITDA Key financial highlights for FY21 (₹ in Million) (₹ in Million) 33,308 6,497 29% 21,936 25,880 Growth in consolidated 3,887 revenues for FY21 led by regulated markets 2,575 29% 67% 67% EBITDA growth driven by FY19 FY20 FY2
Slide 28: Strong balance Sheet with steady improvement in ROCE
Strong balance Sheet with steady improvement in ROCE Consolidated Net Debt Net Debt To Equity Ratio Key balance sheet highlights (₹ in Million) (x times) and ROCE 0.76 22,885 0.46x 0.44 0.46 Healthy Net Debt to Equity 12,834 11,469 ratio at the end of FY21 1.98x FY19 FY20 FY21 FY19 FY20 FY21 Strong
Slide 29: Straddling the biotech strategy with de-risked model
Straddling the biotech strategy with de-risked model Biologics is a long gestation business and Stelis has completed the investment phase to near full scale commercialization
Slide 30: Stelis is a vertically integrated biopharma and vaccine company ready to expand horizons
Stelis is a vertically integrated biopharma and vaccine company ready to expand horizons Large Scale Infrastructure One Stop Capabilities Integrated vaccine suite ▸ 3 World class facilities with ▸ One-stop shop solution ▸ Dedicated vaccine facility to ~600,000 Square feet R&D from cell line and proc
Slide 31: Integrated and flexible capabilities for a varied range of biologics and vaccines
Integrated and flexible capabilities for a varied range of biologics and vaccines Dedicated R&D Setup Large Commercial Capability Standalone Vaccine facility 30,000 sq.ft. state-of-the-art process 300,000 sq. ft. integrated commercial 250,000 sq. ft. dedicated DS and DP development; pilot/scale-up a
Slide 32: Operating three differentiated domains in the global market covering the value chain
Operating three differentiated domains in the global market covering the value chain Global CDMO Services Vaccines Own Products End to end service provider A full services vaccines CDMO Building a portfolio of including process development, player with dedicated and advanced biosimilars, peptides, s
Slide 33: Leveraging our scientific capabilities with World Class infrastructure for CDMO services
Leveraging our scientific capabilities with World Class infrastructure for CDMO services Drug Product block commercialized with On track to receive all major regulatory Microbial drug substance block already healthy order book for the next 18-24 months approvals in FY22 validated and attracting comm
Slide 34: Integrated global vaccine CDMO business with large capacity and diverse capability
Integrated global vaccine CDMO business with large capacity and diverse capability Diversified vaccine play Update on Sputnik V Evaluating new vaccine partnerships Capabilities DS DP • rAD5 and rAD26 components of the vaccine • Significant ongoing interest and have been validated on the small scale
Slide 35: Own Products - Targeting 6 molecules in phase 1 with combined market size of USD 40b
Own Products - Targeting 6 molecules in phase 1 with combined market size of USD 40b Development Molecule Market Size ($b) Indication Latest Update Stage Filed in EU/ • EU file for MAA under review cycle, expected closure by Q4FY22 STLP001 ~2 Osteoporosis Phase 1 ready for • More than 20 companies a
Slide 36: Establishing long term success with high end manufacturing capabilities
ESTABLISHING LONG TERM SUCCESS WITH HIGH END MANUFACTURING CAPABILITIES Fully integrated and flexible microbial and mammalian manufacturing platforms for drug substances and fill finish of drug products Designed to offer comprehensive CDMO services and own IP biopharma products with regulatory compl
Slide 37: Thank you
Thank you
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