Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q2 FY2025 Earnings Presentation
33 slides from Laurus Labs's earnings presentation, Oct 24, 2024
Slide 1: Cover letter to stock exchanges: Investors/Analysts Presentation
October 24, 2024 To To The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Code: 540222 Code: LAURUSLABS Dear Sirs, Su
Slide 2: Q2 & H1-FY 2025 Financial Results
Q2 & H1-FY 2025 Financial Results 24/10/2024 © 2024 Laurus Labs Ltd.
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that constitute “forward looking statements” including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. W
Slide 4: Agenda
Agenda 1 Q2 & H1 FY 2025 Corporate Overview 2 Q2 & H1 FY 2025 Financial Overview 3 Q2 & H1 FY 2025 Business Review & Strategy 4 Outlook © 2024 Laurus Labs Ltd. Q2 & H1 - FY25 Results Presentation 24/10/2024 3
Slide 5: Corporate Overview
1 Corporate Overview Q2 & H1 FY 2025 4
Slide 6: Executive Summary
Executive Summary • Performance on track to deliver Full Year growth outlook driven by scheduled project deliveries; ₹ 2,419 Cr Revenues in H1 and 1% revenues growth • Encouraging demand for CMO/CDMO integrated service offering and complex APIs; pipeline momentum healthy • ₹ 353 Cr EBITDA resulted i
Slide 7: Other key updates
Other key updates • New small molecules R&D facility opened leveraging advanced capability to meet expanded global partner needs and early phase enquiries • USFDA audit for API manufacturing facility in Hyderabad concluded with Zero Form-483 observations • H1 soft performance in CDMO due to long man
Slide 8: CDMO business environment; Major trends
CDMO business environment; Major trends • Small molecules remains dominant modality representing +68% 1 of novel drug approval, global development show no signs of slowing • Continued demand in small molecule CDMO service across health industry • Demand for specialized expertise with rising numbers
Slide 9: New R&D facility opened to support future growth
New R&D facility opened to support future growth • Inaugurated Small molecule/High potent R&D facility in IKP Area: 200,000 sq.ft Knowledge Park, Hyderabad (India), plan to start operation in Nov-2024 • Bench capacity of +500 scientist as market demand increases • Equipped to address process complex
Slide 10: Growth investments prioritised; improvement in Assets utilization underway
Growth investments prioritised; improvement in Assets utilization underway Targeting Average asset turnover levels Significant allocation in high return API / over next 3 years CDMO projects supported by integrated DP Preparing for NCE project deliveries in Q4FY25. Growth investments prioritized int
Slide 11: Growing network of 'D & M' Sites; Offers unique Flexibility and Integrated supplies
Growing network of ‘D & M’ Sites; Offers unique Flexibility and Integrated supplies R&D center Small Molecules 15 D&M Sites Kilolab Unit, Hyderabad DS Development 1 Unit 1 & 3, Visakhapatnam 3600 KL API/DS Manufacturing 1 2 3 4 5 6 4 Sites under Expansion New R&D - Hyderabad Unit 5, Visakhapatnam 16
Slide 12: Continued ESG progress
Continued ESG progress Multiple recognitions for EHS best practices in H1 • Unit 1 won the “Safe Manufacturing Excellence Awards 2024” • Unit 2 (FDF), bagged Silver Award from “CII for EHS practices” and “National Awards for Manufacturing Competitiveness 2024” • International Safety Award 2023 from
Slide 13: Financial Overview
2 Financial Overview Q2 & H1 FY 2025 12
Slide 14: Financial Performance 1H/FY25
Financial Performance 1H/FY25 1H/FY25 Consolidated Financials Comments [₹Crore] 1H/FY25 1 1H/FY24 Y-o-Y • Revenues : ₹ 2,419 Cr, increased 1%, growth in CDMO and non-ARV generics Revenues 2,419 2,406 +1% offset by lower ARV business as anticipated Gross Margins 55.1% 51.6% +3.5% • Gross Margins : 55
Slide 15: Financial Performance 2Q/FY25
Financial Performance 2Q/FY25 2Q/FY25 Consolidated Financials Comments [₹Crore] 1Q/FY25 2Q/FY25 1 2Q/FY24 Y-o-Y Q-o-Q • Revenues : ₹ 1,224 Cr, flat as robust growth in CDMO division offset by Revenues 1,195 1,224 1,224 0% +2% lower offtake in ARV/Oncology API business Gross Margins 55.1% 55.2% 52.5%
Slide 16: Summary Quarter Performance
Summary Quarter Performance EBITDA & Gross Profit Margins Revenues [₹ Cr] 900 58.0% Core Covid-19 PO [₹ Cr] 53.4% 54.3% 55.1% 55.2% 50.6% 52.5% GPM 49.7% 49.8% 800 1,545 48.0% 700 1,381 1,440 600 38.0% 1,182 1,224 1,195 1,195 1,224 500 26.1% 20.8% 28.0% 400 18.0% OPM 300 14.2% 15.4% 15.3% 14.3% 14.9
Slide 17: Business Review & Strategy
3 Business Review & Strategy Q2 & H1 FY 2025 16
Slide 18: Business Performance 2Q/FY25
Business Performance 2Q/FY25 2Q/FY25 Divisional Revenue Performance CDMO-Synthesis: Up +33% on advancing clinical project. Q4 NCE late phase delivery [₹ Crore] 1Q/FY25 2Q/FY25 2Q/FY24 Y-o-Y Q-o-Q well on track driving full year outlook. Enhancing platform advantage CDMO-Synthesis 214 299 224 33% 40%
Slide 19: CDMO Synthesis – Enhancing platform advantage; Growth outlook intact
CDMO Synthesis – Enhancing platform advantage; Growth outlook intact Revenue Growth Comments [₹ Cr] Y-o-Y ▲ 33% • Robust Q2 driving +8% growth in H1; significant resource Q-o-Q ▲ 40% allocation towards delivering multiple high value complex +8% programs in early/mid/late phases driving longer lead t
Slide 20: CDMO Synthesis – Other key updates
CDMO Synthesis – Other key updates • Strong momentum for the early phase clinical and late phase RFPs continued involving complex technology Active projects including several 70+ Active projects breakthrough including several designated molecules • Small molecules CDMO pipeline healthy; Working on +
Slide 21: API – Temporary shutdown of ARV blocks + Onco demand impacted Q2
API –Temporary shutdown of ARV blocks + Onco demand impacted Q2 Revenue Growth API Sales mix [₹ Cr] -0.4% Y-o-Y ▼ 11% 15% 9% 19% 20% 18% 1226 1221 Q-o-Q ▼ 16% 25% 22% 24% 22% 25% Onco API 745 Other API 629 664 574 557 ARV API 59% 61% 60% 66% 55% 1H 1H 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q FY24 FY25 FY24 FY2
Slide 22: FDF – Benefits from recent US approvals to continue
FDF – Benefits from recent US approvals to continue Revenue Growth Global Filings [₹ Cr] -2% * Includes 14 Tentative 66 approvals in US Y-o-Y ▼ 1% 11 617 602 Q-o-Q ▲ 20% 42 430 7 367 332 328 55 22 274 18 35 3 7 15 15 US EU Canada ROW 1H 1H 2Q 3Q 4Q 1Q 2Q FY24 FY25 FY24 FY24 FY24 FY25 FY25 Approved P
Slide 23: BIO – Underlying growth healthy; Continued positive market demand
BIO – Underlying growth healthy; Continued positive market demand Revenue Growth Comments [₹ Cr] Y-o-Y ▲ 3% • Healthy underlying H1 revenue performance excluding impact of -7% Q-o-Q ▼ 7% bunched-up shipments last year and discontinued low margin non- core nutrition business 89 83 • Positive market d
Slide 24: Transformative technologies – updates
Transformative technologies – updates Cell therapy • Increasing adoption across centers for NexCAR-19 2nd GMP CAR-T D&M site- mid 2025 • BCMA1 received approval to start Phase 1 (India) • Continue to make important inroads with key >200 Patients treated till date community practices >60 Authorized t
Slide 25: Diversifying underlying business growth, backed by Integrated model
Diversifying underlying business growth, backed by Integrated model Healthy revenue growth through robust model Continued diversification of our business mix FY 18 FY 24 160 727 [₹ Crores] 3% 438 5,041 18% 658 1002 2,056 Cr 9% 5,041 Cr 50% 2,056 ARV; 73% 20% +16% CAGR ^ ARV API (Onco+Others) FDF (nA
Slide 26: Maintain the Highest Global standard Quality systems
Maintain the Highest Global standard Quality systems “One Quality Standard for all Markets” 1180+ Quality audits & Inspection Global Customers, Regulatory Last US FDA inspection Authorities since inception Key Key Regulatory # audits (since Date EIR Status Facilities Certifications inception) 50+ In
Slide 27: R&D capabilities – Continue to push forward on sustainable solution
R&D capabilities – Continue to push forward on sustainable solution Accelerate adoption of sustainable technology • Continuous Flow and Bio-catalysis platform continues to be Offer high Quality one-stop CMO/CDMO solution solidified across multiple projects, delivering clear advantages in cost and yi
Slide 28: R&D – Focused approach to pipeline built up have continued
R&D – Focused approach to pipeline built up have continued Investing in Portfolio with Product Specific Approach Diverse pipeline with 82 product filings and 65^ based on Complexity and Scale to continue approvals across US, Canada and EU 500 R&D spends (₹ Cr) As % to Sales 6% ARV Anti- Diab. CVS CN
Slide 29: Outlook
4 Outlook 28
Slide 30: Laurus Strategic Action Areas – Improve Customer focus and strengthen position
Laurus Strategic Action Areas – Improve Customer focus and strengthen position Strategic Action Areas Research-driven operational excellence to deliver Optimized delivery of state-of-the-art Large scale Value through Integrated service ecosystem (across manufacturing sites (fungible) ensuring our ag
Slide 31: Reaffirming FY 2025 Outlook
Reaffirming FY 2025 Outlook Revenues Base business PO ^ Indicative FY25 - Not to scale • Growth drivers: - Leverage recognized platform capabilities to deliver Medium to +9% core long term contracts and commercial opportunity in late-phase growth NCE projects and Ride on positive Industry outlook -
Slide 32: Earnings call details
Earnings call details Laurus Labs Results Conference Call to be held on Thursday, 24 October 2024 at 4:30 PM IST Dial – In – Details Universal Dial-In +91 22 6280 1342 Click below to Express Join with India Local access Number +91 22 7115 8243 Diamond Pass Singapore 800 101 2045 Click here to regist
Slide 33: Additional Information
Additional Information As a research-driven pharmaceutical manufacturing organization, Laurus Labs has been developing and assisting its client organizations to succeed in innovative medicines that globally enhance the health outcomes for patients. Since our inception in 2005, we have been developin