Slide 1: Unichem Laboratories Limited Investor Presentation
Unichem Laboratories Limited UNICHEM Investor Presentation February, 2014 ©Unichem Laboratories Ltd 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may include certain forward-looking statements and information that involve risks, uncertainties and assumptions based on current expectations, within the meaning of applicable laws and regulations. Forward-looking statements are all statements that concern pl
Slide 3: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3
Slide 4: Profile
Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 26th in the Domestic Formulations market as per AWACS MAT Dec, 2013 Amongst the top # 19 companies in representative (covered) market Domestic Operations contribute ~6
Slide 5: History - Key Milestones
History - Key Milestones (Last 10 Years) USFDA certification USFDA Expansion of Realignment of Goa Plant re-certification Packaging of Chronic USFDA of Goa Plant & facility at Care Portfolio Launch of certification Roha Plant GOA Plant Specialties of Ghaziabad Re-location of Division P
Slide 6: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6
Slide 7: Unichem Consolidated Financials
Unichem Consolidated Financials {Rs. Crores} Growing Steadily & Focus on Profitability 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 9M Revenue Since 2001-02 1081 4.0 + Fold Increase 876 UNICHEM 824 866 735 747 + 12% CAGR Op Inc Since 2001-02 152 177 158 188 149 129 4.0 + Fold Increase + 13% CAGR
Slide 8: EBITDA Profile
EBITDA Profile from FY 10 onwards 60 53 51 50 50 50 48 48 48 45 46 46 42 42 39 40 40 37 UNICHEM 33 31 30 27 24 26.8 26.5 26.6 25.7 23.9 24.5 20 20 20 19.1 18 18.6 18.2 16.5 17 17.3 17.2 14.3 15.3 10 13.3 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 10 10 11 11 11 11 12 12 12 12 1
Slide 9: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 9
Slide 10: The Indian Pharma Market
The Indian Pharma Market Current Estimated Size of IPM (MAT Dec, 2013) is Rs. 73,893 Crores Market Growth MAT Dec – 6 % 4 Year CAGR – 14%+ UNICHEM India ranks globally 3rd by volume and 12th by value Expected to rank 8th by value by 2016 Future growth projections vary from an optimistic
Slide 11: Revenue & Business areas break-up FY 2012-13
Revenue & Business areas break-up Consolidated – FY 2012-13 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 90 48 8% UNICHEM 4% 84 71 8% 6% 352 33% 637 201 59% 658 19% 61% 21 2% Formulation - Domestic API - Domestic Formulation - Exports API - Exports International Busin
Slide 12: Revenue & Business areas break-up 9M FY 2013-14
Revenue & Business areas break-up Consolidated – 9M FY 2013-14 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 119 14% 55, UNICHEM 6% 91 11% 538, 75 518 62% 9% 60% 273, 32% 37 5% 20 2% Formulation - Domestic API - Domestic Formulation - Exports API - Exports India Busine
Slide 13: Portfolio Scene: Therapy Dominance & Price Control
Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy Major Revenue contributors: Chronic care accounts for # 62%* of Domestic Formulation Revenues Acute portfolio accounts for # 38%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control Appx 20% of Domestic Portfolio
Slide 14: Cash Generation – Pre R&D Expenses
Cash Generation – Pre R & D Expenses Rs. Crores 08-09 09-10 10-11 11-12 12-13 9M 13-14 Cumulative Positive Cash Flow 168.4 188.7 179.6 152.1 201.3 174* 1,064 Spending: UNICHEM R & D Expenditure 23.5 29.7 40.5 39.7 36.4 36.9 206.7 Capital Expenditure 45.5 44.3 84.2 106.5 76.1 51.2 407.3 Investment in
Slide 15: Unichem in The Indian Pharma Market
Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Dec, 2013 % Gth Total Size of the Market 73,893 6.0 Unichem Represented (Covered) Market 37,142 5.4 Sr. No Top Companies in Covered Market UNICHEM 1 Sun Pharma 2,042 16.0 2 Ranbaxy 1,941 8.6 3 Alkem 1,885 (0.7) 4 Zydus 1
Slide 16: Unichem's Therapy Gaps in the market
Unichem’s Therapy Gaps in the market MAT Dec’ 13 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 36,751 49.7% 2,392 86.9% Unichem Represented Segments 37,142 50.3% 360 13.1% Total Market 73,893 100.0% 2,752 100.0% UNICHEM Unichem is r
Slide 17: Domestic Formulations: Divisions (Chronic)
Domestic Formulations: Divisions Covered Covered Chronic Therapies Specialist (7) Anti-Hypertensive & Anti- Cardiologists, CPs & GPs CVS-Life Anxiolytics Anti-Hypertensive, Statins & Anti-Anginal Cardiologists, Diabetologists, CVS-Star CPs & FPs UNICHEM Anti-Hypertensive, Statins, Diabetes mngmt Car
Slide 18: Domestic Formulations: Divisions (Acute)
Domestic Formulations: Divisions Covered Covered Acute Therapies Specialist (4) Anti-Infective & GPs, NGPs, CPs, Gastrointestinal, Anti- pediatrics, & UVA Pyritic & related products Gynecologists, Extra Urban/Urban Anti- Infective/Allergy Anti-Infective, Multi GPs, CPs, ENT, Dentists, & Gastro (2) V
Slide 19: Domestic Business: Customer Coverage
Domestic Business: Customer Coverage Penetration 7 Chronic Verticals manned by ~1600 + CBAs 4 Acute verticals manned by ~1200 + CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists, Psychiatrists, Nephrologists, Dermatologists, Gynae
Slide 20: Domestic Formulations Business
Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs160cr UNICHEM # 4 Brands in Top 300 brands Anti-Diabetic, 4% – Losar, Losar H, Ampoxin & Unienzyme Musculo- Others, 6% Skeletal, 4% In 1
Slide 21: Brand Building – Focus Brand Portfolio
Brand Building – Focus Brand Portfolio # Top 10 Brands contributes nearly 50% of the company’s domestic revenues – Losar H, Losar, Ampoxin, Unienzyme, Trika, Vizylac, Linox, Telsar, Unistar and Serta – – # # UNICHEM # 50 Brands contributes appx 83% of the company’s domestic revenues 3 - Rs. 50 +cror
Slide 22: Top Product Groups Performance
Top 10 Product Groups Performance Rs. Crores % MAT Dec, % % Market Contribution 2013 Growth Share to Revenue Total Revenue 756 6.5 1.0 100 Losar Group 166 0.6 33.1 22.0 UNICHEM Ampoxin Group 61 (2.0) 26.7 8.1 Unienzyme 50 20.5 16.2 6.6 Telsar Group 45 13.1 4.6 6.0 Trika Group 34 (4.2) 21.3 4.5 Olsar
Slide 23: AWACS Data – MAT Dec, 2013
AWACS Data – MAT Dec, 2013 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 5,884 8.9 353 6.0 6.1 UNICHEM Anti-Infectives 9,423 0.6 120 1.3 8.6 Neuro-Psychiatry 2,483 8.6 93 3.7 5.4 Gastroenterologicals 4,558 4.1
Slide 24: AWACS Data: Quarterly Sales & MAT
AWACS Data Quarterly Sales & MAT- Mar, 2013 Market Size Value Growth Value Growth Indicators Unichem (Crs) (Crs) (%) (%) MAT March’ 13 70,529 11.9 720 7.9 Q1 FY 13 17,016 16.9 174 7.2 UNICHEM Q2 FY 13 18,755 13.6 187 9.2 Q3 FY 13 18,137 8.9 182 8.1 Q4 FY 13 17,083 8.1 181 8.4 Q1 FY 14 18,426 8.3 184
Slide 25: Globally Accredited Manufacturing Facilities
Globally Accredited State of the art Manufacturing Facilities APIs – Roha (Maharashtra) – Multi purpose plants Regulatory approvals - USFDA, EDQM, and TGA – Pithampur (MP) – Multi purpose plants Regulatory approvals – USFDA , EUGMP Formulations UNICHEM – Baddi (HP) – essentially catering to domestic
Slide 26: Domestic Market – Management Focus
Domestic Market – Management Focus Domestic Market – Entry into unrepresented / uncovered market segments Entered Hospital and Gynecology segments in 2011-12. Currently focusing on portfolio augmentation for enhanced coverage – Enhancing relationship with customers and Focus on Field Productivity UN
Slide 27: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 27
Slide 28: International Business
International Business Company has made significant investments in building infrastructure to support international business Regulatory Approvals Goa Plant - USFDA, MHRA, MCC, ANVISA, TGA & WHO Ghaziabad Plant - USFDA, MHRA, ANVISA & MCC UNICHEM More than # 750 product registrations across the w
Slide 29: International Business – Formulations: Emerging Markets
International Business – Formulations Zone 1 : Emerging Global Markets Strategic alliances in place for distribution and marketing of branded generics Geographic Mix – FY 2012-13 – In SAARC countries, S.E Asia, Baltic Republics, CIS, Central Asian Republics, Africa and the Middle east South East, 36
Slide 30: International Business – Formulations: Regulated Markets
International Business – Formulations Regulated Markets Geographic Mix – FY 2012-13 Geographic Mix – YTD 2013-14 US / Canada - 34 % UNICHEM Europe- 27 % US / Canada - 49% Europe - 15% Niche - 36% Niche - 39 % ©Unichem Laboratories Ltd 30
Slide 31: Regulated Markets - USA and LATAM
International Business – Formulations Regulated Markets - USA and LATAM UINITED STATES: UNICHEM PHARMACEUTICALS (USA) Inc - wholly owned subsidiary to manage ANDA filings and Business Development Business model is based on leveraging Unichem’s technical expertise and production capability with i
Slide 32: Regulated Markets - Europe
International Business – Formulations Regulated Markets EUROPE European presence through 100% subsidiary - Niche Generics, UK The subsidiary identifies products for development, recommends these products to Unichem for development. In the later stages of development the subsidiary sells these UN
Slide 33: International Market – Management Focus
International Market – Management Focus United States – Develop long term relationships with local partners – Finalize tie-ups for launching ANDA approved products – More ANDAs filings and approvals – Capitalize end-to-end value chain – Forge relationship with Innovators to become building blocks in
Slide 34: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 34
Slide 35: API Manufacturing Facilities and Infrastructure
API-World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multi purpose plants Regulatory Approvals – USFDA, EDQM, and TGA UNICHEM Pithampur (MP) – Multi purpose plants Regulatory Approvals – USFDA, EUGMP ©Unichem Laboratories Ltd 35
Slide 36: Key APIs
Key APIs Sr. Canadian EDMF / Japanese Technical Current Product List Therapeutic Uses US DMF COS No DMF ASMF DMF Package 1 Alfuzosin Hydrochloride Alphablocker 2 Amlodipine Besylate Anti Hypertensive 3 Amlodipine Maleate Anti Hypertensive 4 Aripiprazole Antipsychotic 5 Be
Slide 37: Key APIs (continued)
Key APIs Sr. Canadian Japanese Technical Current Product List Therapeutic Uses US DMF EDMF COS No DMF DMF Package 17 Losartan Potassium Anti Hypertensive ◘ 18 Meloxicam COX II Inhibitor * NMDA Receptor 19 Memantine Hydrochloride Antagonist, Alzheimer’s disease Anti Protozoal /
Slide 38: Key APIs (Under Development)
Key APIs (Under Development) Sr. No Current Product List Therapeutic Uses US DMF EDMF Technical Package 1 Atomoxetine Hydrochloride Noradrenaline Reuptake Inhibitor ** ** ** 2 Bepotastine Benzene Sulphonate Antihistamine ** ** ** 3 Bimatoprost Ant-Glaucoma ** ** ** 4 Brinzolamide Carbonic Anhydrase
Slide 39: API - Total Revenue
API - Total Revenue F Y 2012 - 13 9M - F Y 2013 - 14 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic, 20% 21% UNICHEM Exports Exports, 80% 79% Export Revenue Break-up by Export Revenue Break-up by Region Region USA / USA/ Canada Canada ROW 2% ROW 2% 18 % 20% Europe Europe,
Slide 40: Management Focus: API
Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets Penetrate into New Regulated Markets UNICHEM Achieve cost leadership in 3~4 molecules Long term Supply Contracts with customers in Regulate
Slide 41: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41
Slide 42: R&D Focus
Focus Unichem has a two fold R&D strategy – Development of Novel Drug Delivery Systems (NDDS) – Development of patent non-infringing processes for APIs Chemical R&D – Centre of Excellence at Goa offering the most conducive environment for value added research – Developed novel, innovative & efficien
Slide 43: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 43
Slide 44: Management & Governance
Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Nasser Munjee; Mr. Prafull D Sheth; Mr. Anand Mahajan) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads CEO – Pharmaceu
Slide 45: Agenda
Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 45
Slide 46: Standalone Financials (INR Lakhs)
Standalone Financials (INR Lakhs) For nine months For nine months Particulars ended Dec ended Dec % Growth 31, 2013 31, 2012 Sales Income from Operations: Domestic Operations Formulations 51,596.84 49,313.21 4.6% API 1,980.70 1,629.67 21.5% International Operations - Formulations 18,079.23 18,277.42
Slide 47: Standalone Financials (Sequential Quarters, INR Lakhs)
Standalone Financials (Sequential Quarters, INR Lakhs) For three For three Particulars months ended months ended % Growth Dec 31, 2013 Sept 30, 2013 Sales Income from Operations: Domestic Operations Formulations 16,642.84 17,393.83 -4.3% API 923.92 656.06 40.8% International Operations Formulations
Slide 48: Thank You
Thank You ©Unichem Laboratories Ltd