Alkem Laboratories Ltd. · NSE:ALKEM
Alkem Laboratories — HSBC Global Investment Summit 2025
32 slides from Alkem Laboratories's conference presentation, Mar 19, 2025
Slide 1: Filing cover letter to stock exchanges
<a> _ ALKEM _ ALKEM LABORATORIES LTD. Regd. Office : ALKEM HOUSE, Senapati Bapat Marg, Lower Parel (West), Mumbai • 400 013, Maharashtra, India. • Phone: +91-22-3982 9999 • Fax: 022-2495 2955 • Email: contact@alkem.com • Website: www.alkemlabs.com Inspiring Healthier Lives • CIN: L00305MH1973PLC1742
Slide 2: Alkem Laboratories Limited – HSBC Global Investment Summit March 2025
<a;> ALKEM _ - . ·ng Healthier Lives lnspm Alkem Laboratories Limited HSBC Global Investment Summit - March 2025
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and
Slide 4: Contents
CONTENTS Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 2 <a> _ ALKEM _ Inspiring Healthier Lives
Slide 5: Alkem at a glance
Alkem at a glance INR 125+ Bn 50+ 5th Revenue from global operations Years of strong growth in Largest Pharma company in India in FY24 Pharma industry (Est. in 1973) in terms of market share INR 555+ Bn market capitalization as of Feb 2025 Predominantly 10+ Experienced India focus Technology platfor
Slide 6: Strong trajectory with ~17% growth CAGR between FY09-24
Alkem has demonstrated strong trajectory with ~17% growth CAGR b/w FY09-24; “Next Alkem” created every 5 years Alkem sales, INR Mn1 ~2.4x ~1.7x 124,392 CAGR FY10-24 • ~2x growth in topline as well as market cap=> “next Alkem” created ~17% every five years 72,658 Three key pillars driving growth – In
Slide 7: 50 years of Alkem journey – a snapshot
50 years of Alkem journey – a snapshot • --------• ---------• --------• --------• ------ • Professionalization of the organization 1973 1978 2003 2006 2007 Inception of Alkem Established the first plant First R&D facility Taxim became India's first Filed the first ANDA in Laboratories Limited at Tal
Slide 8: Distinctive capabilities across manufacturing and R&D
Distinctive capabilities and track record of delivery across manufacturing and R&D Manufacturing facilities R&D facilities Manufacturing Manufacturing Capabilities accreditations 10+ 15+ Technology Global regulatory platforms accreditation Tablet USFDA • 19 Mfg. Facilities – California (1) (1) ....
Slide 9: Fortifying therapy leadership through growing platforms and medical devices
Fortifying therapy leadership globally through investment in growing platforms (e.g., Biosimilars, injectables) and foray in Medical Devices. 10+ 3 179 1,100+ technology platforms new modality platforms US ANDA’s filed Dossiers filed in Int’l incl. fast growing dos- being developed (e.g., (including
Slide 10: Experienced leadership team with cumulative 250+ years of experience
Experienced leadership team with cumulative 250+ years of relevant experience Dr. Vikas Gupta Nitin Agarwal Sunil Pathak Mukesh Tiwari Amit Ghare Ashish Sehgal Chief Executive Office Chief Financial Officer Head, India Rx (Semi- Head, India Trade Gx Head, International Head, R&D and Chronic) Busines
Slide 11: Financial performance – Summary P&L statement
Financial performance – Summary P&L statement Financials (INR Mn) Revenue FY'20 FY'21 FY'22 FY'23 FY'24 Domestic market growth of 11.4% CAGR; TGx contributes to 20%+ of domestic sales Sale of Product 81,920 87,284 105,120 114,403 124,392 Int’l market growth of 10.8% CAGR; US contributes to ~69% of I
Slide 12: Financial performance – Income statement highlights
Financial performance – Income statement highlights Other income and Finance costs (INR Mn) • Other income • Finance costs C) XX% % of revenue 3,108 Other income comprises interest 2,332 income from deposits, dividend income, 2,161 income from a real estate fund, net 1,627 gains on sales of investme
Slide 13: Contents
CONTENTS 0 Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 11 <a> _ ALKEM _ Inspiring Healthier Lives
Slide 14: Contents
CONTENTS 0 Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 12 <a> _ ALKEM _ Inspiring Healthier Lives
Slide 15: 5th largest player in the domestic formulations market
Alkem is the 5th largest player in the domestic formulations market, growing faster than IPM as well as the top 3 players Alkem is ranked 3rd in SMSRC wrt Rx volumes and 5th wrt to sales (basis IQVIA MAT SSA Jan 25) Alkem’s domestic business CAGR witnessed ~12% growth CAGR b/w Revenue, Market MAT JA
Slide 16: Key highlights of Alkem's domestic business
Key highlights of Alkem’s domestic business Detailed ahead Investment in core value drivers… 66 CD CD CD Brands within top-100 IPM brands; 17 1+ Bn brands; 3 mega (5+ Bn) 85% Coverage across prescriber base 17 brands within top 300 IPM brands brands ~ #6 In new products launch; 75+ New 12,500+ Field
Slide 17: Big brands present in attractive segments with higher-than-market growth
Big brands (contributing to 50%+ of total sales) are present in attractive segments and have continued higher-than-market growth , , ,--------------------------------------------------------------------------------------------------------- Revenue split of Alkem1 ,, , Illustrative examples , ,, , ,,
Slide 18: Strengthened new product portfolio through new launches
In parallel Alkem has strengthened its new product portfolio through new launches and accelerating growth of existing high potential brands ,--------------------------------------------------------------------------------------------------------- / Revenue split of Alkem1 I I I Illustrative examples
Slide 19: Extensive sales and distribution network with strong prescriber coverage
Alkem’s extensive sales, marketing and distribution network has led to strong prescriber base coverage (85%+), ensuring sustainable growth Pan-India distribution network with deep presence in both urban and rural segment Established relationship with prescribers 84% 85% 83% 79% 77% 12,500+ 9 75+ 8,4
Slide 20: Contents
CONTENTS 0 Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 18 <a> _ ALKEM _ Inspiring Healthier Lives
Slide 21: Strong footprint in international market with 30%+ revenue contribution
Building a strong footprint in the International market with 30%+ revenue contribution to overall sales Alkem’s performance in Int’l markets (basis internal data) Key details 30%+ Revenue, INR Mn Generics Revenue contribution from clil ~13% Growth CAGR b/w FY18- Int’l – 22% from US and 24 for US mar
Slide 22: Contents
CONTENTS 0 Company overview and journey so far Our endowments and key value drivers Market leadership in domestic market Fast growing and established international operations Outlook for growth 20 <a> _ ALKEM _ Inspiring Healthier Lives
Slide 23: 6 key trends in the Indian healthcare landscape
6 key trends in the Indian healthcare landscape and… 1 Healthcare in India is at a tipping point: Healthcare expenditure is expected to triple to $450+ Bn (~6% of GDP) by 2030, from ~$150 - 160 Bn today (~4% of GDP today) on the back of rising income levels, consciousness towards health, and enhance
Slide 24: Alkem well poised to ride the India wave
… Alkem is well poised to ride the India wave by capturing this opportunity and become a leading healthcare player Alkem is well positioned to capture the growing opportunity and become a leading healthcare player Traditional pharma • A Chronic portfolio • Presence in 4 key chronic TAs; market-beati
Slide 25: Alkem is delivering market beating growth in chronic segment
A. Alkem is delivering market beating growth in chronic segment Company’s Industry Growth Growth Company’s Market MAT MAT Therapy Area Rank Contribution Share JAN21-25’ JAN21-25’ Chronic 22% Anti-Diabetic Qt 14 +1 5.1% ~2% 7% Neuro/ CNS Qt 7 +1 3.7% ~2% 13% 10% Respiratory Qt 16 +1 1.3% ~1% 19% 14%
Slide 26: India TGx market expected to continue to grow at 15-18%
B. India TGx market is expected to continue to grow at 15 - 18% over the next 5 years; Alkem is the leading player in this segment ■ TGx ■ Rest Pharma mkt Why TGx is a critical Alkem’s IPM Sales, INR Bn segment to build performance India TGx is currently estimated to be a market of INR 180-200 1 Bui
Slide 27: Targeted investment in high growth segments for international business
Targeted investment in select high growth segments to build next set of growth pillars for Int’l business Key trends Focus for Alkem • 1 String of pearls approach in RoW market • US continues to remain a treadmill – growth trajectories are slowing down with severe price erosion • Emerging markets ex
Slide 28: Bio CDMO business: strong track record of delivering value
Bio CDMO business: Strong track record of delivering distinctive value for the customers given differentiated value proposition Strong track record of delivering value for the customers Key clients ~ ~ w LUPIN First mover Global 40+ Globally to set up an end- to-end continuous footprint projects ~ ·
Slide 29: Key Highlights of Q3FY25
Key Highlights of Q3FY25 • Total Revenue from Operations was ₹ 33,743 million, with YoY growth of 1.5%. o India sales were ₹ 23,649 million, with YoY growth of 5.9%. o The contribution of domestic sales to total sales in Q3FY25 was 71.1% vs. 68.6% in Q3FY24. o International sales were ₹ 9,605 millio
Slide 30: Key Highlights of 9MFY25
Key Highlights of 9MFY25 • Total Revenue from Operations was ₹ 98,208 million, with YoY growth of 0.9%. o India sales were ₹ 68,482 million, YoY growth of 6.0%. o The contribution of domestic sales to total sales in 9MFY25 was 70.6% vs. 67.6% in 9MFY24. o International sales were ₹ 28,463 million, w
Slide 31: Financial Highlights – Q3 & 9MFY25 (Consolidated)
Financial Highlights – Q3 & 9MFY25 (Consolidated) Financials (INR Mn) Particulars Q3 FY’25 Q3 FY’24 YoY growth 9M FY’25 9M FY'24 YoY growth Revenue from Operations 33,743 33,239 1.5% 98,208 97,318 0.9% Gross Profit 21,700 20,193 7.5% 63,538 59,016 7.4% Gross Profit Margin 64.3% 60.8% 64.5% 60.6% EBI
Slide 32: Thank you
Thank you
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