Wockhardt Limited · NSE:WOCKPHARMA
Wockhardt — Q2 2005 Earnings Presentation
35 slides from Wockhardt's earnings presentation, Jul 19, 2005
Slide 1: Wockhardt Ltd. Analyst Meet
Wockhardt Ltd. Analyst Meet July 19, 2005
Slide 2: An Update
W/4 “7 WOCKHARD, An Update
Slide 3: New Episode in the History of Wockhardt
New Episode in the History of Wockhardt Corporate goal of Shareholder wealth creation achieves a new landmark… Market Capitalization surpasses US $ 1bn.
Slide 4: Milestone
Milestone ~ Only Indian Pharmaceutical company to be selected as a Business Super Brand Î Awarded by The Superbrands Council – an internationally reputed organisation spread over 45 countries Î Recognition for offering consumers emotional and tangible benefits Î Amongst 60 Super Brands of the likes
Slide 5: Biopharmaceuticals - Ready for takeoff
Biopharmaceuticals - Ready for takeoff H E D BLI S A E ST U P T Ground presence SE created / strengthened in important Y markets G LO NO Registrations Marketing CH in developing TE markets O BI Biotech Park commissioned to cater Regulatory to 10-15% of global demand Consistent efforts at Manufacturi
Slide 6: Research Breakthroughs
Research Breakthroughs ~ Technological breakthrough in development of Insulin Glargine Î Long acting insulin analogue Î Phase III clinical trials being initiated Î Product likely to be launched within 18 months in India ~ Novel delivery device Wosulin Pen & cartridges launched
Slide 7: Wosulin Pen & Cartridges
Wosulin Pen & Cartridges ~ Wosulin Pen - India’s first automatic insulin delivery device Î ISO 11608 certified Î Third generation technology designed in UK, specifically for Wockhardt ~ Wosulin Cartridges - First Company to manufacture in India Î High tech cartridges for almost painless injection Ö
Slide 8: Biotech Park
Biotech Park Biotech Park i
Slide 9: Biotech Park
Biotech Park ~ Inaugurated by the President of India Dr. APJ Kalam ~ State of the art facility Î Spread over 3 lac square feet Î Capacity to cater to 10% to 15% of the Global demand Î Capable of handling in all 3 major expression systems Ö Yeast, E-coli, Mammalian cell ~ 6 dedicated manufacturing fa
Slide 10: Biopharmaceutical – Regulatory & Marketing
Biopharmaceutical – Regulatory & Marketing ~ 20 Registrations in the emerging markets ~ 40+ Registrations in the pipeline ~ Three pronged marketing strategy followed Sales & Mktg Strategic Joint Distribution Organization Ventures Partnerships ~ Sales & marketing set up in major markets of erstwhile
Slide 11: Baddi Plant Inauguration
Baddi Plant Inauguration ~ World Class facility spread over 10 acres Î Meeting Indian & Internationals regulatory requirements ~ Facility for tablets, capsules & liquid fillings ~ Enjoys various fiscal benefits ~ Commercial Manufacturing commenced in April’05
Slide 12: Performance Highlights Q2 & H1 - 2005
PERFORMANCE HIGHLIGHTS Q2 & H1 - 2005
Slide 13: Business Highlights - International
Business Highlights - International ~ International business contributes 64% of business Î Growth of 28% over H1’04 Î Powered by Formulation growth of 34% in US & EU ~ Lamotrigine launched in Germany on Day 1 of going off patent ~ US business gains momentum Î Formulation business grows over 150% in
Slide 14: Business Highlights - Domestic
Business Highlights - Domestic ~ Domestic formulation business recovers Î Growth of 27% for Q2’05 Î Growth of 5% for H1’05 ~ Wosulin average monthly sales cross Rs 1.5 cr ~ Strategic focus on Power Brands paying off Î Dexolac enters Top 100 list Î Two more brands enter ORG Top 300 list on MAT basis
Slide 15: Financial Performance
W/4 “7 WOCKHARD, Financial Performance
Slide 16: Financial Highlights – Q2, 2005
Financial Highlights – Q2, 2005 ~ Sales at Rs. 377 crores, growth of 29% over Q2’04 Î International business grows by 34% Î Domestic business grows by 23% ~ Operating Profits increase by 39% to Rs. 96 crores ~ Operating margins improve to 25.4% Î Improvement of 180 basis points ~ Net profits at Rs.
Slide 17: Financial Highlights – H1, 2005
Financial Highlights – H1, 2005 ~ Sales at Rs. 687 crores, growth of 18% over H1’04 Î International business grows by 28% Î Domestic business grows by 3% ~ Operating Profits increase by 23% to Rs. 156 crores ~ Operating margins improve to 22.7% Î Improvement of 90 basis points ~ Net profits at Rs. 1
Slide 18: Geographical Snapshot
Geographical Snapshot 1750 +23% +21% 1400 1050 Rs Mn 700 +90% +43% 350 0 India EU US ROW Q2 04 Q2 05
Slide 19: Geographical Snapshot – Formulation
Geographical Snapshot – Formulation 1750 +27% +28% 1400 1050 Rs Mn 700 +308% +64% 350 0 India EU US ROW Q2 04 Q2 05
Slide 20: Geographic Split – H1'05
Geographic Split – H1’05 ROW: 12% India: 36% Growth +32% Growth +3% Europe: 41% US: 11% Growth +16% Growth +91%
Slide 21: International Business
W/4 “7 WOCKHARD, International Business
Slide 22: USA
USA ~ Robust growth of +90% for H1’05 Î Formulation business grows by over 150% Î Sales through distribution arrangements & under own banner witness significant improvement ~ Commenced sale of Famotidine ~ US business to get a further boost in H2’05 Î New approvals Î Other strategic / co-marketing a
Slide 23: USA – Product Performance
USA – Product Performance Market Share Trends 37% 40% 35% 30% 25% Mar-04 17% 16% 20% 15% Mar-05 10% 6% 5% 0% Bethanechol Enalapril Source: IMS Database Enhancing market presence of the key products
Slide 24: Europe
Europe ~ Business grows by 16% in H1’05 Î Formulation business grows by 22% ~ Lamotrigine launched in Germany on Day 1 of patent expiry Î First time in the history of Esparma ~ Commenced commercial supplies to Amylin during the quarter ~ UK witnesses healthy growth of over 10% in real terms in H1’05
Slide 25: ROW
ROW ~ Strong performance in the emerging markets Î Formulation business grows by 32% during the first half Î Driven by healthy CIS and Biotech performances ~ 3 new biotech registrations (Total 20) ~ All the biotech products registered in Ukraine Î Own field force soon to provide marketing boost Î In
Slide 26: ROW
ROW ~ Entered into strategic marketing alliance Î GCC + 4 Arab countries ~ Wosulin expected to be launched in Chile & Mexico Î Commercial orders already received ~ Wepox WHO-GMP obtained ~ Wosulin WHO-GMP inspection commenced
Slide 27: Domestic Business
W/4 “7 WOCKHARD, Domestic Business
Slide 28: Domestic Formulations
Domestic Formulations 2400 Growth of 5% 2300 Rs Mn 2200 2100 2000 H1'04 H1'05 Industry performance of –0.7% (Source: ORG) Domestic Formulation business back on growth trajectory post uncertainties surrounding VAT issue in Q1’05
Slide 29: Business Highlights
Business Highlights ~ Formulation Business firmly on growth track, grows by 27% in Q2’05 Î Compensates for Q1’05 de-stocking issues ~ Wosulin average monthly sales cross Rs 1.5 cr Î 50% increase compared to Q1’05 ~ Dexolac in ORG top 100 Î Range strengthened by launch of Dexolac 3 for children in ag
Slide 30: Diabetology Portfolio
Diabetology Portfolio 100 % of 15 th Grow erl y 80 art u nded Q pou Rs. in Mn 60 Com 40 20 0 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2'05 Consistent growth led by - Presence in both Insulin & Oral Anti Diabetes - Innovation & Persistence
Slide 31: Nephrology Portfolio
Nephrology Portfolio 100 Growth of 18% 90 Rs. in Mn. 80 70 60 50 H1'04 H1'05 Led by healthy growth of Wepox
Slide 32: Biotech Portfolio
Biotech Portfolio Growth 170 of 32% 160 Rs. in Mn 150 140 130 120 H1'04 H2'04 H1'05 Strategic intent and commitment paying rich dividends
Slide 33: Outlook - H2, 2005
W/4 “7 WOCKHARD, Outlook - H2, 2005
Slide 34: Outlook
Outlook ~ Continuing with good performance of H1’05, the outlook for H2’05 looks positive Î US & EU Ö New product launches Ö Strategic alliances Î ROW Ö CIS & Biopharmaceuticals Î Domestic Ö Focused efforts on therapeutic areas of interest
Slide 35: Thank You
W/4 “7 WOCKHARD, Thank You