Rpg Life Sciences Limited · NSE:RPGLIFE
Rpg Life Sciences — Investor Presentation (June 2019)
27 slides from Rpg Life Sciences's investor presentation, June 2019
Slide 1: Investor Presentation
Investor Presentation June 2019
Slide 2: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 3: Contents
Contents Company Overview FY 19 Performance Highlights Way Forward
Slide 4: Contents
Contents Company Overview FY 19 Performance Highlights Way Forward
Slide 5: Business Overview: Company
Business Overview: Company Domestic Formulations International API API Formulations Sales* : Rs 331 crs Manufacturing: Both API & EBIDTA : 34 crs Formulations (3 Units) PBT : Rs 15 crs Employees: ~1160 Exports : 39% * Excludes other operating income
Slide 6: Business Overview: Business Verticals
Business Overview: 3 Business Verticals ▪ Comprises of Mass & Specialty Businesses ▪ Mass Business is a Mass-specialty Business with strong ‘Text Book’ brands in Cardio-vascular, Ortho, Neuro and GI therapies ▪ Specialty Business is segment-leading ‘Nephro’ business with newer therapies ‘Onco’ and ‘
Slide 7: Management Team
Management Team Recently Recently joined joined Yugal Sikri BM Sundaram Samir Rane Milind Gujar Manoj Muthiyan Managing API, Intl. & Domestic – Chief Quality New Product Dev. Director Specialty Main Officer & Regulatory Affairs Suchitra Tiwari Kartick Patra Rajesh Chopra Himmat Patel Mahesh Narayana
Slide 8: Board of Directors
Board of Directors Name Experience Harsh Vardhan Goenka – Chairman Chairman, RPG Group Yugal Sikri - Managing Director Ex-Ranbaxy, Novartis, Pfizer, GSK, RPG Life Sciences Sachin Nandgaonkar - Non Executive Director Ex-Senior Partner at BCG C L Jain – Independent Director Ex-CFO at Hoechst India Dr
Slide 9: Manufacturing Facilities
Manufacturing Facilities Ankleshwar, Unit 1 Ankleshwar, Unit 2 • Formulations Plant • Formulations Plant • WHO, Kenya, Nigeria • WHO, EUGMP,Ethiopia, Kenya, approved Sudan, Nigeria approved Navi Mumbai • API Plant • WHO, TGA approved
Slide 10: Key Products: Domestic – Majorly 'Text Book' Brands
Key Products: Domestic – Majorly ‘Text Book’ Brands Therapy Products Cardiovascular Aldactone, Cardibeta Neuro-psychiatry Serenace Orthopedic Naprosyn Gastrointestinal Lomotil, Lomofen+, Rabee, Tricaine Azoran, Arpimune ME, Mofetyl, RPO, Nephrology Darba, X-Mab Respiratory Romilast Nutritional Minmi
Slide 11: Key Products: International Formulations
Key Products: International Formulations Existing Products Products Under Development ▪ Azathioprine ▪ Sodium Valproate - EUCTD ▪ Mycophenolate Mofetil (EU) ▪ Aminocaproic Acid – ANDA ▪ Nicorandil – EUCTD ▪ Azathioprine – ANDA ▪ Sertraline (Contract Mfg.) ▪ Mycophenolate Mofetil - ANDA ▪ Clotrimazol
Slide 12: Key Products: API
Key Products: API Azathioprine Risperidone Quinfamide APIs Sertraline Haloperidol Nicorandil Lamotrigine
Slide 13: Contents
Contents Company Overview FY 19 Performance Highlights Way Forward
Slide 14: RPGLS: A transformation journey in progress
RPGLS: A transformation journey in progress Portfolio clean-up Growth restoration Profitability upliftment Leadership strengthening USFDA ANDA filing approval Specialty strengthening Brands acquisition Bio-tech Focused investment in sell-off Formulations business
Slide 15: FY 19: A poor year, after 3 strong years
FY 19: A poor year, after 3 strong years FY 15-16 FY 16-17 FY 17-18 FY 18-19 Results Results Results Results Sales (Rs cr.) 251 292 344 331 PBT (Rs cr.) 8.4 14.5 20.4 15.05 PBT % 3.3% 4.9% 5.9% 4.5% PAT (Rs cr.) 8.4 12.09 13.45 10.81 PAT % 3.3% 4.1% 3.9% 3.3% Note : Sales, PBT figures are excluding
Slide 16: Domestic makes up ~60% of company business
Domestic makes up ~60% of company business API 20% 20% International Formulations 21% 35% 24% Formulations Mass Domestic 24% Formulations Specialty Formulations
Slide 17: Domestic: Setback in Mass Formulations
Domestic: Setback in Mass Formulations ₹ cr Mass Formulations Sales 150 145 121 115 104 100 ₹ cr Domestic Formulations Sales 50 250 218 197 200 183 0 168 FY16 FY17 FY18 FY19 150 100 ₹ cr Specialty Formulations Sales 50 100 80 0 72 FY16 FY17 FY18 FY19 58 54 50 0 FY16 FY17 FY18 FY19 17
Slide 18: Challenges in Mass Business & Actions initiated
Challenges in Mass Business & Actions initiated Challenges Faced 35% ▪ Market slowdown in represented segments ▪ High reliance on trade; low focus on Rx generation ▪ High in-market inventories, expiries & returns De-growth of 21% Actions Initiated Loss after 2 years of ▪ Change in business leadershi
Slide 19: Domestic: Specialty segment continues to grow
Domestic: Specialty segment continues to grow Challenges Faced ▪ Low volume growth in Nephrology business ▪ Price control and low margins in Oncology business 24% ▪ Slower than targeted ramp-up in Urology business Growth of 12% Actions Initiated Improved profitability ▪ Focus on new prescribers & ne
Slide 20: Intl. Formulations: Setback in Regulated Market Business
Intl. Formulations: Setback in Regulated Market Business Country-wise Sales Split ₹ cr 3% 6% 3% 80 28% 12% 60 22 24 35 40 20 51 20 43 22% 27 30 28% 0 FY16 FY17 FY18 FY19 Canada SE Asia UK & Rest of Europe Africa Emerging Markets Regulated Markets LATAM Others Australia ▪ Growth in Emerging Markets b
Slide 21: Intl Formulations: Challenging year but investment continues
Intl Formulations: Challenging year but investment continues Challenges Faced ▪ Loss of 1 key customer in UK for Azathioprine 20% ▪ Steep price corrections in UK market ▪ High dependence on tenders/ B2B in emerging countries De-growth of 8% Actions Initiated Investment towards ▪ Significant efforts
Slide 22: API: Continues to be a strong cash cow
API: Continues to be a strong cash cow Others 80 Sales 68 Prop.Br. (4%) (15%) Gr. -34% 60 54 43 36 Risperidone(6%) 40 Gr. 66% Quinfamide (50%), 20 Aza (8%) Gr. 58% Gr. 40% 0 FY16 FY17 FY18 FY 19 Lamotrigine (7%) Halo Gr. 135% (10%) Gr. 7% ▪ Consistent Performance for the last 3 years ▪ Quinfamide is
Slide 23: API: Limited Customer & Molecule Base
API: Limited Customer & Molecule Base Challenges Faced 21% ▪ Limited customer & molecule base ▪ Legacy plant not capable of upgradation to regulated market standards Strong growth & Actions Initiated profitability ▪ Manufacturing Strategy optimisation - Outsourced Good demand manufacturing initiated
Slide 24: FY19: Improvements visible in H2
FY19: Improvements visible in H2 Gross Contribution (% to Sales) Opex (% to Sales) 66% 67% 58% 55% H1 H2 H1 H2 EBDITA (% to Sales) PBT (Rs Crs) 9.36 12% 5.69 9% H1 H2 H1 H2
Slide 25: Contents
Contents Company Overview FY 19 Performance Highlights Way Forward
Slide 26: Strategy Forward: Continued focus on Formulations
Strategy Forward: Continued focus on Formulations ▪ Focus: Above market growth with strong profitability ▪ Strategy: Product portfolio augmentation, Prescriber base expansion, Field force capability building Domestic Formulations ▪ Focus : Downstream integration for ▪ Focus: Growth/ Entry formulatio
Slide 27: Thank You
T H A N K Y O U
RPG Life Sciences — Investor Presentation (June 2019) on 6ix