Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Investor Day (September 2024)
75 slides from Piramal Pharma's investor day presentation, Sep 24, 2024
Slide 1: Exchange filing cover letter for investor presentation
24th September, 2024 BSE Limited National Stock Exchange of India Limited P.J. Towers, Dalal Street, Fort, Exchange Plaza, Bandra-Kurla Complex, Mumbai- 400 001 Bandra (East), Mumbai – 400 051 BSE scrip code: 543635 NSE symbol: PPLPHARMA Sub: Investor Presentation under the SEBI (Listing Obligations
Slide 2: Piramal Pharma September 2024
PIRAMAL PHARMA September 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Piramal Pharma Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any manner,
Slide 4: Management Attendees
Management Attendees Nandini Piramal Peter DeYoung Chairperson Chief Executive Officer Global Pharma 15 Years at Piramal 12 Years at Piramal 03
Slide 5: Management Attendees
Management Attendees Vivek Valsaraj Viral Gandhi Jatin Lal Puneet Rajput Executive Director & President & Group Chief President Chief Human Resource Chief Financial Officer Information Officer Mergers & Acquisitions Officer 24 Years at Piramal 9 Years at Piramal 21 Years at Piramal 1 Year at Piramal Rashi
Slide 6: Management Attendees
Management Attendees Contract Development and Manufacturing Organization (CDMO) Complex Hospital Generics (CHG) India Consumer Healthcare (ICH) Herve Berdou Stuart Needleman Jeffrey Hampton Nitish Bajaj Chief Operating Chief Commercial & President & Chief Executive Officer Patient Centricity Officer Chie
Slide 7: Agenda
Agenda Company CDMO Complex India Q&A Overview & Hospital Consumer Strategic Generics Healthcare Priorities Nandini Piramal Herve Berdou Jeffrey Hampton Nitish Bajaj Management Attendees Peter DeYoung Stuart Needleman Mahesh Sane Anagha Deshpande Chris Leahy 06
Slide 8: Company Overview & Strategic Priorities
01 Company Overview & Strategic Priorities
Slide 9: Our Purpose and Mission
Our Purpose and Mission Doing Well and Doing Good PURPOSE Making a Positive Difference to the health of our patients & consumers through our products & services Serving our patients, customers, consumers, community, employees, partners, MISSION stakeholders & our planet Living Our Values in our every
Slide 10: Our Vision
Our Vision US$2+ Bn Global Pharma, Health & Wellness Company by FY2030 VISION We aspire to be amongst top 10 companies in our addressable markets Overview & Strategy CDMO Complex Hospital Generics India Consumer Healthcare Joint Venture 09
Slide 11: Phases of Our Evolution
Phases of Our Evolution 1988 2010 2020 2022 Nicholas Piramal Healthcare Piramal Enterprises Ltd. Piramal Pharma Ltd. Laboratories Domestic Formulations Piramal Pharma Financial Services CDMO Pharma Solutions (CDMO) CDMO Wholesale Lending Complex Hospital Generics Critical Care (CHG) Complex Hospital
Slide 12: Diversified Business Model with Global Operations
Diversified Business Model with Global Operations Contract Development and Manufacturing Organization Complex Hospital Generics India Consumer Healthcare Innovation Focused Integrated CDMO with Global Operations A Critical Care Company Fast Growing Consumer Healthcare Company Inhalation Anesthesia In
Slide 13: Global Footprint with a Diversified Revenue Base
Global Footprint with a Diversified Revenue Base Revenue by Geography (% of total FY2024) Revenue by Business Verticals 10% 12% 70% revenue from Regulated Markets 20% 41% ₹ 8,171 Crores # 30% 58% (US$987 Mn) 4% 25% North America Europe Japan India Others CDMO Complex Hospital Generics India Consumer
Slide 14: Best-in-Class Quality Track Record
Best-in-Class Quality Track Record Over the last 18 months, 5 of our CDMO ~125 facilities contributing over half of our CDMO revenues in FY2024, successfully Annual customer completed USFDA inspections with zero 44 USFDA inspections audits1 observation or an EIR successfully No pending observations
Slide 15: Track Record of Organic and Inorganic Expansion
Track Record of Organic and Inorganic Expansion Successfully Integrated Over 15 M&A Transactions in the Last 10 Years Acquisition Portfolio of OTC Business brands from Pfizer Rationale 100% stake in ICH Little's and Naturolax Expand OTC portfolio Convergence Chemicals Hemmo (Dahej facility) Pharmaceu
Slide 16: Track Record of Organic and Inorganic Expansion
Track Record of Organic and Inorganic Expansion Value Creation from Acquired Assets Across Businesses Business CDMO CHG ICH Ash Stevens (Riverview facility, 100% stake in Convergence Acquisition Little’s - Baby care brand Michigan,US) Chemicals (Dahej facility) US$ y ₹ 195 US$ 3X+ 67 Mn Capacit 2X+
Slide 17: Track Record of Organic and Inorganic Expansion
Track Record of Organic and Inorganic Expansion Going Forward, Organic / Inorganic Investments will be Managed on the basis of Financial Performance, Debt Levels and Cashflows Acquisitions / investments will be in line with the strategic plan, aimed at: Adding differentiated Offering synergies with our
Slide 18: Building Resilience Today for a Sustainable Tomorrow
Building Resilience Today for a Sustainable Tomorrow Environment Social Climate Change Management Diversity & Inclusion (D&I) • Reduce Scope 1 and Scope 2 GHG1 emissions by 42% and • 18%+ Women in Global Workforce in FY2024 vs. 15% in FY2023 Scope 3 by 25% by FY20302 • 30% Women representation on th
Slide 19: Building Resilience Today for a Sustainable Tomorrow
Building Resilience Today for a Sustainable Tomorrow In Exclusive Club of Companies with SBTi# Approved GHG Reduction Targets Only the 3rd* Indian Pharmaceuticals, Biotechnology and Life Sciences company with SBTi approved Near Term Targets Less than 20* Pharmaceuticals, Biotechnology and Life Scien
Slide 20: Building Resilience Today for a Sustainable Tomorrow: Governance
Building Resilience Today for a Sustainable Tomorrow Governance Protecting Human Rights Experienced and Diversified Board Robust Risk Management System Strong focus on Quality and Compliance Zero-tolerance towards bribery Board committees for effective Comprehensive risk management Successfully closed
Slide 21: Experienced and Diversified Board
Experienced and Diversified Board Nandini Piramal Peter DeYoung Neeraj Bharadwaj S. Ramadorai Jairaj Purandare Executive Director, Executive Director, Non-Executive Non-Executive, Non-Executive, Chairperson CEO, Global Pharma Director Independent Director Independent Director Sridhar Gorthi Peter Ste
Slide 22: US$2+ Bn Company with 25% EBITDA Margin by FY2030
US$2+ Bn Company with 25% EDITDA Margin by FY2030 Strategic Goals for FY2030 US$1.2 Bn revenues with ~25% US$600 Mn revenues with 25%+ US$200 Mn revenues with double-digit EBITDA margin EBITDA margin EBITDA margin CDMO CHG ICH Emerge as a fast-growing, Become a leading critical care company Establis
Slide 23: Transformations to Drive Outcomes
Transformations to Drive Outcomes Transformations Outcomes Invest in Differentiated Products / Services Drive market beating CDMO: Focus on differentiated services and on-patent molecules growth with superior CHG: Shift in portfolio strategy towards specialty and differentiated products revenue mix ICH
Slide 24: Financial Aspirations for FY2030
Financial Aspirations for FY2030 3x 2x 1x Over 3x Growth in More than Double the Reduce Leverage EBIDTA Revenues on the Balance Sheet ~25% US$2+ Bn ~1x EBITDA Margins Revenue Net debt to EBITDA Exponential Growth Enhance ROCE in PAT Early Teens PAT Margins High Teens ROCE Note:- The aspirations ment
Slide 25: Key Investment Highlights
Key Investment Highlights US$2+ Bn Global Pharma, Health & Wellness Company by FY2030 1 Strong promoter group with over 35 years of demonstrated ability to build scalable and differentiated businesses 2 Presence in large multi-billion dollar size attractive industry segments with promising tailwinds
Slide 26: Key Risks and Mitigation Plans
Key Risks and Mitigation Plans Area Key Risks Mitigation Plans Enhance business development efforts to target more customers with large Macro Economic Challenges Continued stress in Biotech Funding development pipeline and healthy balance sheet / secured funding Focus on late stage development or com
Slide 27: CDMO
G piamal, 02 CDMO
Slide 28: Global CDMO Market
Global CDMO Market Global CDMO Market - US$250 Billion by 2030 Global CDMO Market* Global CDMO Market Expected to Grow at 7-8% CAGR (In US$ Bn) Growth in global pharmaceutical market - increasing chronic and age-related disorders Rising investments in R&D to develop advance therapeutics 240-250 Supp
Slide 29: Broad Archetypes of CDMO Companies
Broad Archetypes of CDMO Companies Integrated Services Technology Specialists End-to-end offerings across lifecycle of molecule Value Maximisers (Discovery, Development, Pharma Players Commercial manufacturing) Offering CDMO Strong capability in specialized Focused on: Services technologies • Developi
Slide 30: We are an Integrated CDMO Company with Global Operations
We are an Integrated CDMO Company with Global Operations 1 Service Offerings Across the Lifecycle of the Molecule 2 Global Network of Sites Offering Integrated Services and Cross-sell Opportunities Global 3 Deep Development Pipeline of 150+ Projects across Multiple Phases Integrated CDMO Company 4 Ove
Slide 31: Service Offerings Across the Lifecycle of the Molecule
Service Offerings Across the Lifecycle of the Molecule Discovery Development Commercial Manufacturing On-Patent Off-Patent Pre-Clinical Phase 1 Phase 2 Phase 3 Launch Commercial Commercial Comprehensive range Clinical development services for API and Ability to manufacture across a wide of Contract Re
Slide 32: Global Network of Sites - Integrated Services and Cross-sell Opportunities
Global Network of Sites - Integrated Services and Cross-sell Opportunities Amongst Top Few CDMOs Having Network of Facilities in the West and the East (ex-China) Benefits of Facilities in the East and the West Cross-sell Opportunities Provides flexibility to customers of our Top 20 customers (& 31 out
Slide 33: Leverage our Integrated Service Offerings
Leverage our Integrated Service Offerings Integrated project involves more than one site Target More Integrated Projects Benefits to the Customers Reduced time-to-market Reduced operational complexity Integrated projects of new service orders Lower supply chain costs 125+ executed since inception 40%+
Slide 34: Integrated ADC Services
Integrated ADC Services We Offer Fully Integrated ADC Solutions - Payload-linker, mAb, ADC Drug Substance, and Fill-finish mAB (Yapan Bio, India) Binds to specific proteins on cancer cells Payload (Riverview, US) A chemotherapy drug that destroys tumor cells Linker (Aurora, Canada) Attaches the mAb to
Slide 35: Deep Pipeline of 150+ Projects across Multiple Phases
Deep Pipeline of 150+ Projects across Multiple Phases Revenue by Services Deep Development Pipeline Across Clinical Phases 2.9x 151 Pre-Clinical 33 3.3x 12% 50% Innovation 4% related work Phase 1 26% 34% 38 1.8x 34% 20% Phase 3 19% Phase 2 52 10 68 3.8x 50% 21 18 3 12 4.0x FY24 FY17 FY24 Discovery D
Slide 36: 50% Revenues from Innovation Related Work
50% Revenues from Innovation Related Work FY2024 CDMO Revenues by Services m ork 4% Discovery Services lat fro w 4% of our FY2024 CDMO revenues on re es ed enu 26% PDS (Discovery) site in Ahmedabad commenced operations in 2003 50% of rev Team of 300+ scientists supporting diverse set of customers Fo
Slide 37: Increasing Contribution from Differentiated Offerings
Increasing Contribution from Differentiated Offerings Differentiated Offerings Antibody Drug Conjugates (ADC) High Potent APIs (HP API) Potent Sterile Injectables On-patent API Development & Grangemouth Riverview, Aurora Lexington Manufacturing Digwal Peptide APIs Synthesis Hormone Drugs Vaccines & Biol
Slide 38: Diversified Customer Base
Diversified Customer Base Attractive Customer Mix Relatively Low Customer Concentration #1 Generics Big Pharma 11% #2 29% 8% 38% 64% of revenue from #3 Over 500 customers 5% Big Pharma and 55% across segments Others 5% #4 8% Emerging Biopharma Others 16% 26% Top 5-10 Emerging Biopharma Long Standing
Slide 39: Strategic Goals: US$1.2 Bn Revenues with ~25% EBITDA Margin
US$1.2 Bn Revenues with ~25% EBITDA Margin by FY2030 We aspire to emerge as a fast-growing, innovation-focused integrated CDMO, leveraging our scientific excellence and our global network of end-to-end and differentiated services to bring valued solutions to our customers and their patients Strive for
Slide 40: Focus on Customer Delight
Focus on Customer Delight Focus on Customer Delight through Raise the bar - High performance across key Enhanced Business Development (BD) consistent execution across network sites metrics efforts to win more orders and effective program management Secure additional orders from existing Standardize /
Slide 41: Increase Utilization and Capture High Growth Opportunities
Increase Utilization and Capture High Growth Opportunities Unlock Profitability Through Operating Leverage Improve Network Utilization Capture High Growth Opportunities • Higher customer wallet share • Unlock capacities through OE initiatives • Pipeline progression - discovery to launch • Holistic ma
Slide 42: Customer Led Investments in Capabilities and Capacities
Customer Led Investments in Capabilities and Capacities Digwal Lexington Riverview Expand API Enhance Sterile Expand HP API Capacities Fill-Finish Capacities Capacities Aurangabad Turbhe Multisite New API Site Offer CDMO Integrated ADC in India Services Services Overview & Strategy CDMO Complex Hospi
Slide 43: Continuous Focus on Margin Enhancement
Continuous Focus on Margin Enhancement Superior Revenue Mix EBITDA Margin Recovery – Last 5 quarters, PPL YoY EBITDA growth has been significantly higher than revenue growth, Increase contribution from Innovation Related Work primarily led by improvement in CDMO business EBITDA margin Focus on Differe
Slide 44: To Summarize
To Summarize Become a US$1.2 Billion CDMO Company with ~25% EBITDA Margin by FY2030 Driven By Innovation Integrated Differentiated Customer Margin Cross Related Work Services Offerings Delight Enhancement Selling While maintaining our Best-in-Class Quality track record Overview & Strategy CDMO Complex
Slide 45: Complex Hospital Generics
03 Complex Hospital Generics
Slide 46: Complex Hospital Generics Business
Complex Hospital Generics Business A Leading Critical Care Company with Differentiated Portfolio About US$300 Mn critical care business with healthy EBITDA margins of over 25% Steady double digit revenue growth (10% CAGR FY2016-2024) despite COVID disruption Market leading brands across several produ
Slide 47: Commercial Presence in Over 100 Countries
Commercial Presence in Over 100 Countries Worldwide Marketing and Distribution Network Established channel relationships and robust commercial infrastructure Direct sales force in the US with a strong GPO relationships Direct to market access in key European countries Distribution reach to over Coun
Slide 48: Strategic Goals: US$600 Mn Revenues with 25%+ EBITDA Margin
US$600 Mn Revenues with 25%+ EBITDA Margin by FY2030 Become a leading critical care company by strengthening our core of inhalation anesthesia, injectable pain, and intrathecal therapies and building a growing portfolio of differentiated and specialty products for patients Leading Player in Inhalatio
Slide 49: Inhalation Anesthesia
Inhalation Anesthesia US$1 Billion Global Inhalation Anesthesia (IA) Market Sevoflurane – ~85% of Global IA Market US and Europe constitute ~48% of the Top 4 players - ~90% of Global IA Market global IA market Limited competition: Top 4 players including Global IA market comprising of Sevoflurane, Pir
Slide 50: Our Strengths in Inhalation Anesthesia
Our Strengths in Inhalation Anesthesia Vertical Integration – Better Control on Cost and Supply Chain KSM Manufacturing Sevoflurane and Desflurane Sevoflurane and Isoflurane Dahej, India Bethlehem, US Digwal, India Expanding In-house Capacities to Capture Demand in Emerging Markets Setting up Sevoflurane
Slide 51: Our Strengths in Inhalation Anesthesia
Our Strengths in Inhalation Anesthesia Extensive Distribution Network and Strong Relationships with Hospitals & GPOs Commercial Presence in Relationship with 6,000+ Detailed Understanding of 100+ Countries Hospital & GPOs Globally Market Operations Drug Device Combination - Dedicated Vaporizer Suppo
Slide 52: Intrathecal Therapy
Intrathecal Therapy Leading Player in the Intrathecal Baclofen Market in the US Intrathecal therapy provides treatment options to patients suffering from Spasticity (involuntary muscle contractions that cause stiffness) and Dystonia (muscle contractions that can result in twisted or abnormal postures)
Slide 53: Injectable Anesthesia & Pain Management Portfolio
Injectable Anesthesia & Pain Management Portfolio Branded Portfolio with Leadership Position in Select Markets In 2016, Piramal Pharma acquired five branded injectable anesthesia and pain management products from Janssen (Belgium) Brands Products Sold in 50+ Countries Dipidolor® (Piritramide) Market
Slide 54: Well Defined Growth Levers
Well Defined Growth Levers Portfolio Strategy • Invest in differentiated New Product Launches and specialty portfolio Intrathecal & Injectable • Create fit-for-purpose Pain Management • Commercialise existing organization Inhalation Anesthesia • Defend leading position product pipeline • Defend leading
Slide 55: Continue to Build Generic and Specialty Portfolio
Continue to Build Generic and Specialty Portfolio While our current pipeline of Generic injectables is going to We will continue to invest in Differentiated and Specialty drive the near to mid-term growth products to enable long term growth • Differentiated and specialty products will form a key part
Slide 56: Continue to Build Generic and Specialty Portfolio
Continue to Build Generic and Specialty Portfolio Addressable Market of Differentiated and Specialty Products is Highly Attractive United States Europe Market Overview Market Overview • US$27 Bn addressable injectable market • US$40 Bn addressable injectable market • 200 molecules with lower competit
Slide 57: Continue to Build Generic and Specialty Portfolio
Continue to Build Generic and Specialty Portfolio We have Room to Play in this Market Select Examples of Our Experience in Differentiated & Focus on Differentiated & Specialty Products Specialty Products • E.g. 505(b)(2)’s, Complex generics, Differentiated generics, Branded Gablofen Mitigo products to
Slide 58: To Summarize
To Summarize Become a US$600 Million Critical Care Company with 25%+ EBITDA Margin by FY2030 Driven By Leadership in Defend & Expand Market Investment in Productivity and Inhalation Share in Intrathecal & Differentiated and Cost Optimization Anesthesia Injectable Pain Specialty Portfolio Overview & S
Slide 59: India Consumer Healthcare
04 India Consumer Healthcare
Slide 60: Indian OTC Market
Indian OTC Market India OTC Market to Grow at 8% CAGR Growth Drivers (in US$ Bn) 11.1 Young & urban consumers with increasing 8.9 disposable incomes Rising income level & rapid urbanization 6.9 Young population who are aware & keen to spend for 5.3 better products & preventive healthcare 4.6 Highly
Slide 61: Fast Growing Consumer Healthcare Company
Fast Growing Consumer Healthcare Company Self-Funded Business with Annual Revenues of about ₹1,000 Crore 17%+ CAGR Building Scale: 985 From 3 brands and about ₹ 100 Cr sales in 2008 to 25+ brands and about ₹ 1,000 Cr sales in 2024 Revenue Growth 345 Sales have almost tripled in the last 5 years at C
Slide 62: Market Leading Brands in Attractive High Growth Segments
Market Leading Brands in Attractive High Growth Segments Diversified Portfolio of Over 25 Brands Skin Care Kids Wellness Adult Women Intimate Digestives VMS1 Analgesics Cold & Category Incontinence Health & Hygiene Flu Market Size (US$ Mn) 2,000 1,740 140 450 430 1,400 820 1,500 Category Growth2 13%
Slide 63: Strategic Goals: US$200 Mn Revenues with Double-digit EBITDA Margin
US$200 Mn Revenues with Double-digit EBITDA Margin by FY2030 Establish ourselves as a significant player in the Indian consumer healthcare segment with market leading brands and extensive distribution reach Build profitable Power Brands with turnover ranging from ₹ 100 Cr to ₹ 500 Cr Scale-Up Power Br
Slide 64: Scale Up Power Brands
Scale Up Power Brands Build ₹ 100 Crore to ₹ 500 Crore Profitable Power Brands Brand Aspirations by FY2030 Accelerate Power Brands Growth through Multimedia Investments Brand Endorsements ₹ 500Cr 250Cr ₹ Kareena Kapoor Jisshu Sengupta Amyra Dastur Ajay Devgan Little’s Polycrol Lacto - HSM belt Tetmos
Slide 65: Media Spends and New Product Launches Driving Power Brands
Media Spends and New Product Launches Driving Power Brands Media Spends and New Product Launches... ...Driving Healthy Growth in Power Brands Increasing Media and Trade Spends Growth of Power Brands % of ICH sales 16% 15% 15% 13% 32% CAGR 448 131 131 115 370 Media & Trade Revenue Growth 83 (In ₹ Cro
Slide 66: Built Successful Innovation Strategy & Strong Funnel of New Products
Built Successful Innovation Strategy & Strong Funnel of New Products Meets Success Metrics Meets Success Metrics Pilot launch in Development at Launch on Scale-up on Modern Trade & Product Ideation National Launch R&D / Third Party E-commerce E-commerce General Trade Meets Success Metrics Idea Explo
Slide 67: Innovation Strategy to Drive Volume Through Hi-Potential Concepts
Innovation Strategy to Drive Volume Through Hi-Potential Concepts Unique Concepts Low Complexity High Potential Fast to Follow First to market propositions; Large segments with growth Fast growing segments in backed by claims / consumer potential, differentiated E-commerce space, potential research v
Slide 68: Multi-Channel Distribution Network and Tech-Enabled Sales Coverage
Multi-Channel Distribution Network and Tech-Enabled Sales Coverage Presence Across Traditional and Alternate Trade Channels Wide Coverage across Strengthening Expanding Presence Direct-to-Customer General Trade and Presence on E-commerce (D2C) Chemist in Modern Trade 22+ leading 8,000+ orders handle
Slide 69: Omni-Channel Expansion
Omni-Channel Expansion Rural Markets General Trade Modern Trade Establish super stockiest Build coverage in top weighted Maximize distribution across network in less than 1 lakh general trade non-chemist / Hyper / Super / Standalone population towns cosmetic outlets in existing towns modern trade ou
Slide 70: Profitable E-Commerce Channel
Profitable E-Commerce Channel Scale Up E-commerce Business through New Product Launches and Channel Expansion Sales on E-commerce channel has grown at over 58% CAGR in last 3 years E-commerce channel contributes ~20% to ICH revenues versus 10% in FY2021 Presence on 22+ leading E-commerce platforms. P
Slide 71: To Summarize
To Summarize Become a US$200 Million Consumer Healthcare Company with Double-digits EBITDA Margins by FY2030 Driven By Scaling-up Power Omni-Channel Profitable Tech Enablement & Brands Expansion E-commerce Analytics Overview & Strategy CDMO Complex Hospital Generics India Consumer Healthcare Joint Ve
Slide 72: Joint Venture with Abbvie
6 Piramal Pharma Limited 05 Joint Venture with Abbvie
Slide 73: Abbvie Therapeutics India Private Limited
Abbvie Therapeutics India Private Limited* Joint Venture Arrangement Ownership 49% Ownership 51% In FY2024, the JV reported# revenue of ₹ 461 Cr with PAT margin of 27% Commenced commercial operations in 1996 and has emerged as the market leader in the fast-growing Ophthalmic category in India Succes
Slide 74: Abbvie Therapeutics India: Market Leading Brands
Abbvie Therapeutics India Private Limited Market Leading Brands Brand Lumigan Combigan Refresh Tears Alphagan Pred Forte Segment Glaucoma Glaucoma Dry Eyes Glaucoma Eye Inflammation th Market Ranking 3 rd 1st 1 st 6 1 st Source of Market Ranking – IQVIA MAT July’24 Overview & Strategy CDMO Complex Ho
Slide 75: For Investor Queries
For Investor Queries Gagan Borana Investor Relations & Enterprise Risk Management Email: gagan.borana@piramal.com Madhusudan Dalmia Investor Relations Email: madhusudan.dalmia@piramal.com