Gland Pharma Ltd. · NSE:GLAND
Gland Pharma — Q3 FY21 Earnings Presentation
35 slides from Gland Pharma's earnings presentation, Jan 22, 2021
Slide 1: Financial Results Q3 & 9M FY21
Gland Pharma Limited Financial Results Q3 & 9M FY21 22nd January 2021
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) Resilient growth across all financial metrics Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 2,994 10,621 8,594 25,751 19,980 2,371 8,086 6,459 35% 33% 40% 39% Q3 FY20 Q3 FY21 9M FY20 9M FY21 Q3 FY20 Q3 FY21 9M FY20 9M FY21 PAT / PAT Margin (3
Slide 4: Financial Highlights (2/3)
Financial Highlights (2/3) Strong balance sheet and cash position Net Worth (1) Cash and Bank Balances / Net Cash (2) (INR Mn) (INR Mn) 56,221 28,169 28,128 12,278 36,462 13,252 13,202 43,943 Mar'20 Dec'20 Mar'20 Dec'20 Networth Fresh issue of equity Total Cash Net Cash Net Working Capital (3) Capit
Slide 5: Financial Highlights (3/3)
Financial Highlights (3/3) Capital efficient business with healthy return on capital Asset Turnover Ratio (1)(2) ROCE (3) / RONW (4) (Annualised %) 2.8 2.5 31.6% 34.0% 21.8% 17.2% 0.7 22.3% 0.6 17.5% Total Asset Turnover Fixed Asset Turnover 9M FY20 9M FY21 9M FY20 9M FY21 Cash Flow from Operations
Slide 6: P&L Highlights
P&L Highlights YoY YoY Amount in INR Mn Q3 FY21 Q3 FY20 9M FY21 9M FY20 Q2 FY21 growth growth Revenue from operations 8,594 6,459 33.1% 25,751 19,980 28.9% 8,315 Other Income 351 253 38.9% 876 930 -5.8% 204 Total income 8,945 6,712 33.3% 26,627 20,910 27.3% 8,519 Gross Margin(1) 4,525 3,685 22.8% 14
Slide 7: USA, Europe, Canada and Australia (Core Markets)
USA, Europe, Canada and Australia (Core Markets) Revenue: 9M FY21: Rs. 17,415 Mn Q3 FY21: Rs. 6,021 Mn YoY Growth: 20% YoY Growth: 24% Growth observed on account of new launches, supported by volume growth in existing portfolio with ramping up of capacities Core Markets (1) New launches: Q3 FY21
Slide 8: Rest of the World Markets
Rest of the World Markets Rest of the world markets sales has been driven by new 9M FY21: Rs. 4,019 Mn Q3 FY21: Rs. 1,078 Mn YoY Growth: 119% YoY Growth: 161% partnerships and increased penetration geographically Our ability to respond to the changing market demand Rest of the World Markets duri
Slide 9: Domestic Market
Domestic Market Domestic markets sales growth has been driven by 9M FY21: Rs. 4,317 Mn Q3 FY21: Rs. 1,495 Mn YoY Growth: 20% YoY Growth: 25% strong demand of core product portfolio Commissioning of new Pre-filled syringe line at Domestic Indian Market Pashamylaram facility helped increase volume
Slide 10: Near Term Focus Areas
Near Term Focus Areas Focus on achieving a diverse product mix offering products at various stages of their lifecycle as well as a robust product pipeline Expanding development and manufacturing capabilities in complex injectables such as peptides, long-acting injectables, suspensions and hormonal
Slide 11: Investor Presentation
GLAND PHARMA LIMITED Investor Presentation
Slide 12: Snapshot
Snapshot 7 Manufacturing Extensive and Vertically Integrated Greater Control Over Facilities – Manufacturing Processes Injectables Manufacturing Capabilities 4 Finished Formulation and 3 API No Warning Letters 282 ANDA Filings in Consistent Compliance Track Record with from USFDA Since the US (1) (2
Slide 13: Journey
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 at First OTC launch in Launch of Enoxaparin Sodium Sodium Injection (Germany) approval for Visakhapatnam, Vis
Slide 14: Business Overview: 7 Facilities
Business Overview Extensive and Vertically Integrated Manufacturing Capabilities With Consistent Compliance Track Record 4 Finished 3 API Facilities 7 Facilities Formulation Facilities & 11,000 kg / year and 3 API facilities provide in-house manufacturing capabilities for 767 million units R&D Pilot
Slide 15: 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 December 31, 2020 • One of the fastest growing generic injectables-focused companies by revenue in the US from 2014 to 2019 (1) • Successful track record of opera
Slide 16: 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 17: 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 (1) Cash Flows
Slide 18: Injectables: One of the Largest and Fastest Growing Segment
Injectables: One of the Largest and Fastest Growing Segment Injectable formulations is the fastest growing segment in global pharmaceuticals, recording a 2014-2019 CAGR of 1 10.1% vs overall pharma market at 5.8% Growth Global generic injectables market is estimated at c.US$131bn growing at a 20
Slide 19: Generic Injectables: Growth Opportunity
Generic Injectables: Growth Opportunity US$131bn Market with Multiple Growth Levers Driven by LoEs, Opportunity from Shortages and Ease of Use Sizeable Injectable Market … … Growing Faster than Broader Market … with Robust Growth in Generics Injectable recorded CAGR of 10.1% vs broader Key injectabl
Slide 20: Generic Injectables: Growth Drivers
Generic Injectables: Growth Drivers Injectables Segment has Demonstrated the Fastest Growth among Delivery Formats Increase in the prevalence of Convenience and benefits of New diabetes and other chronic 1 2 Drug Delivery Systems diseases where treatment is primarily (“NDDS”) like auto injectors, pr
Slide 21: 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 22: Extensive & Vertically Integrated Manufacturing Capabilities
Extensive & Vertically Integrated Manufacturing Capabilities Overview Manufacturing Footprint 7 Facilities Dundigal, Hyderabad Sterile Injectables Facility (Flagship) USFDA (US), MHRA (UK), • Liquid Vials, Lyophilizers, Ampoules, ANVISA 4 3 Pre-filled syringes, Bags and (Brazil), TGA Ophthalmics (Au
Slide 23: 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 December 31, 2020 (1) as a result of facility USFDA, and certain Drugs Control inspection or otherwise)
Slide 24: 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.96% of FY20 Revenue) B2C (c.4% of FY20 Revenue) B2B – IP Led B2B Tech Transfer B2B CMO B2C Own Filing Partner Filing • Out-license to marketing p
Slide 25: 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 26: 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 27: 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 (FY20) Broad Range of Filin
Slide 28: 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 29: 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 30: Professional and Experienced Management Team
Professional and Experienced Management Team Name Qualification Management Team Srinivas Sadu • Master’s degree in science (pharmaceutics) from Long Island University, New York Managing Director and Chief Executive • Master’s degree in business administration from University of Baltimore; Officer •
Slide 31: 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 32: 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 33: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance Growth and Profitability from a Diversified Revenue Base Revenue from Operations EBITDA (1) / EBITDA Margin (2) (INR Mn) (INR Mn / %) 26,332 39.5% 20,442 37.2% 16,229 34.9% 10,946 7,921 5,841 FY18 FY19 FY20 FY18 FY19 FY20 Increase in Export Sales, Driven
Slide 34: 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) 23% CAGR 13,252 13,202 36,462 28,620 7,533 7,479 6,708 6,649 24,104 FY18 FY19 FY20 FY18 FY19 F
Slide 35: Registered Office
Registered Office Gland Pharma Limited Survey No. 143-148, 150 & 151 Near Gandimaisamma 'X' Roads D.P. Pally, Dundigal Gandimaisamma Mandal Medchal-Malkajgiri District Hyderabad 500043, Telangana, India 543245 GLAND GLAND:IN 35